3 Malaysian Firms Explore 1:1 Ringgit Stablecoin for Fund Settlement
Three Securities Commission Malaysia-licensed entities are exploring a fully reserved, 1:1 Ringgit-backed stablecoin to settle tokenised money market funds in real time. The closed-loop institutional design could compress fund settlement cycles and reduce settlement risk.
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Finance briefing
Key takeaways
- Three Securities Commission Malaysia-licensed entities are exploring a fully reserved, 1:1 Ringgit-backed stablecoin to settle tokenised money market funds in real time.
- The closed-loop institutional design could compress fund settlement cycles and reduce settlement risk.
In this briefing
Mentioned
Key Intelligence
Key Facts
- 1Luno Malaysia, Halogen Capital, and Kenanga Investors announced at LIDAC 2026 in Kuala Lumpur on 24 September 2026 that they will explore UMYR, a proposed Ringgit-pegged stablecoin, for settling tokenised money market funds.
- 2All three entities are licensed by the Securities Commission Malaysia: Luno as a Recognised Market Operator (Digital Asset Exchange), Halogen Capital and Kenanga Investors as Capital Markets Services Licence holders.
- 3UMYR is proposed to be issued by a dedicated, ring-fenced entity within the Luno group and backed one-for-one by Ringgit held onshore in a segregated account at a regulated banking partner.
- 4The initiative aims to demonstrate real-time Delivery-versus-Payment (DvP) settlement for fund subscriptions and redemptions, reducing conventional settlement windows.
- 5The arrangement is a closed-loop, business-to-business system for whitelisted institutional participants only; no retail clients will be onboarded, involved, or served.
- 6The announcement remains an exploration-stage proposal with no confirmed regulatory approval, issuance date, or retail availability.
Who's Affected
Analysis
For finance professionals, settlement risk and capital efficiency are the core of this story. Luno, Halogen Capital, and Kenanga Investors are testing whether an on-chain, Ringgit-pegged settlement asset can move fund subscriptions and redemptions from conventional windows to near real-time Delivery-versus-Payment, without exposing retail investors. It is a signal that Malaysian tokenisation is moving from issuance infrastructure to settlement infrastructure.
On 24 September 2026, at the LIDAC 2026 conference in Kuala Lumpur, Luno Malaysia Sdn. Bhd., Halogen Capital Sdn. Bhd., and Kenanga Investors Berhad announced a strategic collaboration to explore UMYR, a proposed fully reserved, Ringgit-pegged stablecoin, as an on-chain settlement instrument for tokenised money market funds. The three parties are all licensed by the Securities Commission Malaysia (SC): Luno as a Recognised Market Operator (Digital Asset Exchange), and Halogen Capital and Kenanga Investors as Capital Markets Services Licence (CMSL) holders operating tokenised funds and mandates. The initiative is presented as an exploration, not a launched product, and no regulatory approval, issuance date, or retail availability has been confirmed.
Bhd., and Kenanga Investors Berhad announced a strategic collaboration to explore UMYR, a proposed fully reserved, Ringgit-pegged stablecoin, as an on-chain settlement instrument for tokenised money market funds.
UMYR would be issued by a dedicated, ring-fenced entity within the Luno group and backed one-for-one by Ringgit held onshore in a segregated account with a regulated banking partner. The arrangement is designed as a closed-loop, business-to-business system among whitelisted institutional participants only, with no retail clients onboarded, involved, or served. Luno Country Manager Scarlett Chai framed the initiative as evidence that Malaysia's digital asset ecosystem is moving from foundational setup to institutional capability, while Halogen Capital CEO Hann Liew described UMYR as aligned with modern asset management, and Kenanga Investors CEO Datuk Wira Ismitz Matthew De Alwis said the project would complement Kenanga's asset tokenisation efforts.
From a market-structure perspective, the collaboration matters because it targets the settlement leg of tokenised funds rather than simply tokenising fund units. The stated goal is real-time Delivery-versus-Payment (DvP) settlement for fund subscriptions and redemptions, potentially compressing the settlement windows associated with conventional rails. Tokenised funds have existed in Malaysia on an exploratory basis, but the cash leg of settlement has often remained on legacy payment networks; this project would move that cash leg on-chain while keeping the Ringgit claim fully reserved. The closed-loop design reduces counterparty, AML/CFT, and market-integrity risk, an important concession to regulators, while the proposed 1:1 onshore reserve with a regulated bank addresses stablecoin backing concerns that have plagued less regulated issuers.
What to Watch
Still, the announcement warrants measured reading. The press release does not reference Bank Negara Malaysia, the central bank, whose views on a Ringgit-denominated settlement asset may ultimately determine whether UMYR can move beyond a controlled exploration. Stablecoins typically raise questions of monetary sovereignty, payment-system access, and resolution mechanics even when structured as closed-loop B2B instruments. The SC oversees digital asset exchanges and fund management, but a Ringgit-pegged settlement token may also intersect with payment regulation and banking law. No timeline for the DvP demonstration was provided, and current versus target settlement windows were not specified, making efficiency gains directional rather than measurable at this stage. Participants should treat UMYR as licensed incumbents positioning for institutional tokenisation, not a tradable asset or imminent utility.
If the exploration advances, it could serve as a template for Southeast Asian markets seeking to integrate stablecoins into institutional fund settlement without retail speculation. The involvement of Kenanga Investors, an established asset manager, and Halogen Capital, an early tokenised fund operator, suggests genuine demand for better settlement rails. For Luno, the project extends its role beyond retail exchange into institutional infrastructure. Key milestones to monitor include regulatory engagement with Bank Negara Malaysia, disclosure of the regulated banking partner, reserve attestation mechanics, and any sandbox or pilot approval. Until those materialise, the market impact remains prospective but strategically notable.
Timeline
Timeline
Collaboration announced at LIDAC 2026
Luno Malaysia, Halogen Capital, and Kenanga Investors announce a strategic collaboration to explore UMYR, a proposed 1:1 Ringgit-backed stablecoin, for real-time DvP settlement of tokenised money market funds.
Cite This Page
"3 Malaysian Firms Explore 1:1 Ringgit Stablecoin for Fund Settlement." Finance Intelligence Brief, September 25, 2026. https://getfinancebrief.com/story/luno-halogen-kenanga-ringgit-stablecoin-fund-settlement-finance
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