CIMB has completed a pilot using tokenised deposits to settle RM1.38 billion in tokenised sukuk.
The pilot was linked to a RM1.68 billion issuance under CIMB Islamic Bank’s RM10 billion Senior Sukuk Wakalah Programme, with tenors ranging from five to 15 years.
Twelve institutional investors subscribed to the tokenised portion, while the remaining RM300 million was issued as traditional sukuk.
Tokenisation uses distributed ledger technology to represent financial assets digitally.
CIMB undertook the pilot as part of its participation in Bank Negara Malaysia’s Digital Asset Innovation Hub, which provides a controlled environment for testing digital asset applications.
The bank has also engaged the Securities Commission Malaysia on developing tokenised capital market products.
The tokenisation layer did not change the sukuk’s underlying economic or Shariah structure.
YB Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II, said,
“This pilot is important because it moves tokenisation beyond theory and tests how digital financial assets and commercial bank money can work together in a controlled environment.
The objective is not digitalisation for its own sake, but to explore whether technology can make financial markets more efficient, transparent and connected while preserving strong standards of governance, investor protection and Shariah compliance.”
Novan Amirudin, Group Chief Executive Officer of CIMB Group, said,
“This pilot allows us to test how tokenised financial assets can operate alongside existing market infrastructure and, importantly, how tokenised deposits can be used for settlement. The potential benefits are practical. Greater automation and faster settlement could reduce friction in financial transactions, improve liquidity management and increase capital efficiency.
The experience gained from this pilot will help us assess how these capabilities can be developed further in Malaysia and, potentially, across regional and cross-border applications.”
The issuance and settlement activities could also provide insights into how tokenised instruments may support coupon distributions, secondary-market transfers and redemptions.
Featured image: Edited by Fintech News Malaysia, based on image by CIMB
