AirAsia's parent company is also getting involved! Capital A and Standard Chartered have reached a collaboration to jointly explore the development of the 'Ringgit Stablecoin'.

Malaysia is making a full push for the development of digital assets, just days after the Crown Prince of Johor announced a move into stablecoins, the low-cost airline leader 'AirAsia's' parent company - Capital A is also not to be outdone, announcing a significant collaboration with Standard Chartered Bank's Malaysia branch to jointly explore the development and testing of a stablecoin pegged to the Malaysian Ringgit (MYR).

According to a statement issued today (12), Capital A, led by 'Aviation Tycoon' Tony Fernandes, has signed a letter of intent (LOI) with Standard Chartered Bank's Malaysia branch.

The two parties will collaborate to develop and test this stablecoin within the regulatory sandbox mechanism of the Digital Asset Innovation Centre (DAIH) under Bank Negara Malaysia (the central bank).

According to the collaboration plan, Standard Chartered Bank Malaysia will act as the issuer of the stablecoin, responsible for conceptualizing, testing, and delivering this innovation; while Capital A will be responsible for co-developing, testing, and is expected to conduct wholesale-level application testing in real scenarios.

This also marks Capital A's first foray into the regulated digital asset space, writing a new chapter for the expansion of its fintech business landscape.

Fernandez pointed out in a statement: "The future of finance lies in digitalization, and this memorandum of understanding marks an important milestone in our transformation from an aviation-centric group to a trusted, technology-driven ecosystem."

Standard Chartered Bank Malaysia CEO Mai Jun Yan stated: "Digital assets are a core component of Standard Chartered Bank's strategy. This collaboration with like-minded partners such as Capital A to enter the stablecoin sandbox reflects our commitment to building the future financial economic structure and leading the development of inclusive finance."

"AirAsia's parent company has also joined the fray! Capital A and Standard Chartered have reached a collaboration to jointly explore the development of the 'Ringgit stablecoin.'" This article was first published on (Blockcast).