CIMB advances tokenised sukuk push with RM1.68bil pilot
KUALA LUMPUR: CIMB Group Holdings Bhd, through CIMB Islamic Bank Bhd, has completed a pilot to test the settlement of tokenised sukuk using tokenised deposits in a controlled environment.
KUALA LUMPUR: CIMB Group Holdings Bhd has completed a RM1.68 billion pilot to test tokenised sukuk settlement using tokenised deposits in a controlled setting. The initiative, led by CIMB Islamic Bank Bhd, involved issuing RM1.38 billion in tokenised sukuk and RM300 million in traditional sukuk as part of CIMB Islamic's existing RM10 billion senior sukuk wakalah programme.
Tokenisation, achieved through distributed ledger technology, represents financial assets digitally, while tokenised deposits symbolize commercial bank money in digital form. By merging these two, CIMB aims to enhance automation, streamline settlement processes, and boost liquidity management. CIMB Islamic Bank CEO Ahmad Shahriman Mohamad Shariff emphasized the drive behind this initiative, which seeks to promote inclusivity, transparency, and efficiency in financial transactions.
He highlighted that digitalization can make investments more accessible to smaller investors while bolstering transparency by enabling tracking of funds throughout the transaction process. Furthermore, tokenisation can facilitate faster settlement, heightening efficiency and reinforcing Malaysia's position in the capital market.
CIMB is collaborating with Bank Negara Malaysia's digital asset innovation hub and engaging with the Securities Commission on the creation of tokenised capital market products.
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