Bank Negara Malaysia (BNM) has launched a new distributed ledger-based platform for the issuance and safekeeping of tokenized bonds and Islamic sukuk, linking digital securities records to round-the-clock settlement in central bank money.
The central bank announced the Scripless Securities Depository System, or SSDS+, on October 20. Developed internally using cloud and distributed ledger technology, the system modernizes Malaysia’s existing bond market infrastructure. SSDS+ handles the issuance, depository, and safekeeping of digital debt securities, with ownership and transfers recorded electronically. It was built on the foundation of the country’s existing scripless securities depository used in the wholesale financial market.
The platform connects directly to RENTAS+, Malaysia’s upgraded real-time gross settlement system. While SSDS+ maintains the securities records, RENTAS+ processes the corresponding payments for bond purchases using central bank money. This separation of functions allows payment and settlement services to operate around the clock, supporting financial institutions outside conventional banking hours.
Unlike models that rely on private stablecoins or other digital payment tokens, the settlement process announced by BNM uses central bank money. The central bank said digital records are expected to simplify transactions and give issuers greater flexibility in designing financial instruments. The infrastructure is primarily intended for the wholesale market but is also ready to support tokenized government securities and corporate retail bonds.
BNM Governor Abdul Rasheed Ghaffour described the launch as a significant step for the country’s financial infrastructure.
“Together, SSDS+ and RENTAS+ provide a secure, faster, more flexible, and digitally-enabled foundation for new use cases in securities and payments,” he said.
The central bank has not yet identified the first bond issuer that will use SSDS+, nor has it disclosed transaction volumes or a timeline for when tokenized retail bonds will become available through the platform.
The securities launch builds on earlier work to modernize Malaysia’s interbank payment infrastructure. In October 2025, BNM introduced RENTAS+, which allows financial institutions to transfer and settle funds continuously throughout the year. The upgrade removed fixed daily settlement windows for supported interbank payments and made RENTAS the first real-time gross settlement system in ASEAN to offer continuous 24-hour operations.
Alongside the payment upgrade, BNM introduced an automatic liquidity facility that lets participating institutions access liquidity through repurchase agreements and sell-and-buy-back arrangements. These tools were designed to help banks manage settlement obligations when transactions occur outside regular business hours. The connection with SSDS+ in October 2026 extends that existing payment infrastructure to transactions involving tokenized debt securities.
Malaysia had already tested tokenized debt before the new depository platform was announced. As stated on April 28, the Securities Commission Malaysia has verified that the sovereign wealth fund Khazanah Nasional has priced the first-ever tokenized sukuk pilot with a value of RM100 million. This scheme employed distributed ledger technology to create a digital version of the Islamic financial instrument. The main distinction between sukuk and regular interest-bearing loans is that the former must conform to the principles of Islamic finance; this is where tokenization comes into play, as it allows for digital records while keeping the contract intact.
The Securities Commission described the April transaction as a pilot. BNM’s October announcement did not state that the Khazanah issuance had used SSDS+, indicating that the two developments concern separate parts of Malaysia’s tokenization efforts, one involving a financial instrument and the other a central securities infrastructure.
In October 2025, BNM also published an asset tokenization discussion paper seeking industry feedback on possible applications, regulatory considerations, and pilot programs within the Malaysian financial sector. The consultation covered the development of tokenized financial services and invited responses from financial institutions and other market participants.
In parallel, Malaysia’s central bank has been testing tokenized forms of money. Through its Digital Asset Innovation Hub, financial institutions have examined ringgit-denominated stablecoins and tokenized deposits for domestic and cross-border payment applications. Earlier reports indicated that the initiatives involved Standard Chartered Bank Malaysia, Maybank, CIMB, and Capital A. A separate review noted that BNM’s tokenization working group includes AmBank, Hong Leong Bank, RHB Investment Bank, and other domestic institutions.
BNM has said its stablecoin and tokenized-deposit experiments will inform policy decisions, with further regulatory clarity expected by the end of 2026. The launch of SSDS+ adds a new layer of securities infrastructure to these ongoing digital-asset efforts while keeping settlement in central bank money rather than private tokens.
