Overview

The Securities Commission (SC) Malaysia, in collaboration with Khazanah Nasional Berhad, plans to introduce tokenised bonds and sukuk this year to increase retail investor participation in the capital market. The initiative aims to make bond investments more accessible by allowing investors to purchase fractional ownership of bonds through blockchain technology, rather than buying full units. This approach is expected to democratise access to fixed-income instruments, which are currently limited to sophisticated and institutional investors, while also enhancing transparency and efficiency in the market.

According to SC executive chairman Datuk Mohammad Faiz Azmi, the project will test key features such as smart contracts and custodial arrangements, enabling both SC and Khazanah to assess the opportunities and risks of blockchain-based securities. The SC’s Annual Report 2024 highlights ongoing efforts to develop regulatory guidance for tokenised assets, ensuring risk management and investor protection. While the pace of implementation depends on Bank Negara Malaysia’s regulatory stance, Faiz expressed optimism, noting that the government is actively exploring ways to advance digital asset adoption, with the SC committed to supporting these initiatives.