Luno joins Halogen, Kenanga to explore ringgit-pegged stablecoin for fund settlement

Malaysia's cryptocurrency platform Luno Malaysia will partner with Halogen Capital and Kenanga Investors to investigate the potential of a ringgit-pegged stablecoin to streamline transactions on the blockchain using tokenized money market funds. The collaboration aims to showcase real-time delivery-versus-payment (DvP) settlement for fund subscriptions and redemptions, significantly reducing traditional settlement times and improving capital efficiency for institutional investors.

Luno's country manager, Scarlett Chai, emphasized the importance of infrastructure like the UMYR as Malaysia's digital asset ecosystem moves from a foundational stage to institutional capability. She stated that providing a 1:1 ringgit-backed, fully segregated settlement instrument demonstrates how on-chain liquidity and real-time DvP settlement can operate seamlessly and responsibly within Malaysia's regulatory framework alongside licensed industry leaders.

Halogen Capital's founder and CEO, Hann Liew, highlighted that settlement is the crucial next step for fund tokenization in the domestic market. He noted that testing UMYR as a dedicated settlement instrument aligns with their vision for modern fund management.

Kenanga Investors Bhd CEO, Ismitz Matthew De Alwis, added that the project complements their existing fund tokenization efforts. He believes that pairing the initiative with next-generation settlement infrastructure will bring the industry closer to realizing the full benefits of tokenization.

Luno's CEO, James Lanigan, pointed out that while more investments worldwide are moving onto the blockchain, digital payment systems in local currencies such as the ringgit are still lacking. He emphasized that non-US dollar stablecoins present a significant growth opportunity, as on-chain digital cash predominantly uses US dollars, despite being traded in various currencies in the real world.