CIMB Group, through CIMB Islamic Bank Berhad, has successfully completed a pilot project for the settlement of tokenised sukuk using tokenised deposits. This initiative, part of Bank Negara Malaysia’s Digital Asset Innovation Hub, tested the digital representation of RM1.38b of a RM1.68b sukuk issuance, with the remainder issued traditionally.
Tokenisation, which uses distributed ledger technology, allows financial assets like sukuk to be represented digitally, potentially enhancing automation and settlement efficiency. The pilot aimed to explore how digital financial assets and commercial bank money can work together, offering insights into operational, legal, and regulatory aspects.
The project involved 12 institutional investors and was conducted under CIMB Islamic Bank Berhad’s RM10b Senior Sukuk Wakalah Programme. The tokenisation process does not alter the sukuk’s economic or Shariah structure, ensuring compliance with Islamic finance principles.
Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan, highlighted the pilot’s significance in advancing Malaysia’s capabilities in Islamic finance and capital markets. “This pilot moves tokenisation beyond theory, testing how digital assets can enhance market efficiency whilst maintaining governance and investor protection,” he stated.
Novan Amirudin, CEO of CIMB Group, noted the practical benefits of the pilot, such as improved liquidity management and capital efficiency. “The experience gained will help us develop these capabilities further in Malaysia and potentially across regional and cross-border applications,” he said.
The initiative is part of CIMB’s broader efforts to integrate digital financial assets and explore the practical applications of tokenised deposits in financial markets.
