CIMB completes Malaysia's first pilot settling tokenised sukuk with tokenised deposits
CIMB Group Holdings Bhd has successfully completed a pilot project testing the atomic settlement of tokenised sukuk using tokenised deposits on its proprietary CIMB Blockchain Connect network. Unlike previous Malaysian pilots that relied on traditional fiat rails for cash settlement, this initiative achieved full on-chain settlement for both the financial asset and the commercial bank money. The project involved a RM1.68 billion issuance under an existing RM10 billion senior sukuk wakalah programme, demonstrating the feasibility of instantaneous cross-border transactions. Conducted within Bank Negara Malaysia’s Digital Asset Innovation Hub, the pilot utilized a digital twin approach where on-chain tokens mirror traditional legal records. This milestone is significant for the RWA market as it proves that institutional-grade financial assets can be settled efficiently without relying on legacy banking infrastructure. By reducing settlement friction and improving liquidity management, the project paves the way for the future democratisation of investment assets for retail participants. The successful collaboration with major fund managers and government agencies highlights a growing institutional appetite for blockchain-based capital market infrastructure in Malaysia.
- CIMB settled a RM1.68 billion sukuk issuance using tokenised deposits on CIMB Blockchain Connect.
- The pilot achieved atomic settlement, moving both the asset and cash on-chain simultaneously.
- The project operated under Bank Negara Malaysia’s Digital Asset Innovation Hub regulatory sandbox.
- CIMB utilized a digital twin model, maintaining traditional legal records alongside blockchain tokens.
Sukuk are Islamic financial certificates that comply with Shariah law, functioning similarly to bonds by representing ownership in an underlying asset rather than a debt-based interest-bearing instrument. CIMB Islamic Bank is a major player in this sector, managing large-scale sukuk programmes that provide capital to various institutional and corporate entities.