Luno Malaysia, Halogen Capital and Kenanga Investors are collaborating to explore UMYR, a fully reserved Malaysian ringgit-backed stablecoin, for settling transactions involving tokenised money market funds. The initiative aims to demonstrate real-time delivery-versus-payment (DvP) settlement for fund subscriptions and redemptions, potentially shortening conventional settlement periods. The collaboration brings together regulated digital-asset and capital-markets firms as Malaysia expands its tokenisation infrastructure.
Key Overview
- Participants: Luno Malaysia, Halogen Capital and Kenanga Investors.
- Settlement instrument: UMYR, designed as a 1:1 ringgit-backed stablecoin.
- Use case: Settlement of tokenised money market fund subscriptions and redemptions.
- Technology: Blockchain-based, real-time delivery-versus-payment settlement.
- Regulator: Securities Commission Malaysia (SC).
- Objective: Reduce settlement friction and improve capital efficiency for institutional investors.
- Status: The collaboration represents a pilot and commercial intent; definitive agreements and regulatory engagement remain required.
Luno, Halogen and Kenanga Explore Ringgit-Backed Stablecoin
Luno Malaysia, Halogen Capital and Kenanga Investors are exploring the use of UMYR, a Malaysian ringgit-pegged stablecoin, to settle transactions involving tokenised money market funds.
The initiative aims to demonstrate how blockchain-based settlement can connect digital assets with conventional capital-market products. Rather than relying solely on traditional settlement processes, the proposed structure would allow the fund and payment legs of a transaction to settle together on-chain.
The three firms announced the initiative at the Luno Institutional Digital Asset Conference 2026.
UMYR Would Be Fully Backed by Ringgit
UMYR is designed to maintain a 1:1 value with the Malaysian ringgit, with each token backed by an equivalent amount of ringgit reserves.
The proposed model is intended to provide a dedicated digital settlement instrument for institutional transactions rather than functioning primarily as a retail payment token.
The companies say the structure would use segregated reserves and controls designed to support transparency and accountability.
Real-Time DvP Could Shorten Settlement
A central objective of the pilot is to test real-time delivery-versus-payment (DvP) for subscriptions and redemptions in tokenised money market funds.
DvP means that the transfer of an asset and its corresponding payment occur together. This can reduce the risk that one side of a transaction is completed while the other remains outstanding.
Under the proposed model, tokenised fund units could be exchanged against UMYR on blockchain infrastructure, potentially reducing the settlement window compared with conventional financial-market processes.
For institutional investors, faster settlement could also reduce the period during which capital remains tied up between a transaction and final settlement.
Three Regulated Firms Bring Different Capabilities
The collaboration combines expertise across digital assets, fund management and traditional capital markets.
Luno provides digital-asset exchange and blockchain infrastructure. Halogen Capital brings its experience in digital-asset fund management and tokenised investment products, while Kenanga Investors contributes established asset-management and capital-markets capabilities.
Luno Malaysia is listed by the Securities Commission Malaysia as a registered Digital Asset Exchange operator.
The SC also recognises tokenised capital-market products as digital representations of conventional capital-market products using distributed ledger technology, provided their fundamental characteristics remain unchanged.
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Malaysia Builds Its Tokenisation Infrastructure
The initiative comes as Malaysia develops a broader ecosystem for tokenised financial products.
In April 2026, Khazanah Nasional, working with the Securities Commission Malaysia, completed pricing for Malaysia’s first tokenised sukuk, with a nominal value of RM100 million. The transaction was presented as a step toward using digital technology to improve the efficiency and transparency of domestic capital markets.
The country’s regulated digital-asset market is also expanding. The SC reported that trading value on regulated digital asset exchanges reached RM17.14 billion in 2025, up from RM13.93 billion in 2024.
Institutional Settlement Is the Main Focus
The proposed UMYR use case is focused on institutional fund transactions rather than everyday consumer payments.
By combining tokenised money market funds with a ringgit-denominated digital settlement instrument, the firms are testing whether blockchain can improve the movement of capital within regulated investment markets.
However, the companies have not indicated that the collaboration itself constitutes regulatory approval or a commitment to launch UMYR commercially. Further regulatory engagement and definitive agreements will be required.
Outlook
The Luno, Halogen Capital and Kenanga initiative highlights the next stage of Malaysia’s tokenisation journey: moving beyond digitising assets toward digitising the settlement process itself.
If the pilot demonstrates that tokenised funds and ringgit-backed digital money can settle securely and efficiently, similar infrastructure could potentially be applied to other institutional capital-market transactions.
For now, the project remains an exploration, with regulatory engagement, operational controls and final agreements determining how the proposed settlement model develops.
FAQs
1. What is UMYR?
UMYR is a proposed Malaysian ringgit-pegged stablecoin designed to maintain a 1:1 backing with the ringgit for digital settlement purposes.
2. What will UMYR be used for?
The pilot will explore using UMYR to settle subscriptions and redemptions involving tokenised money market funds.
3. What is DvP settlement?
Delivery-versus-payment means that an asset and its corresponding payment are transferred together. This can reduce settlement risk and potentially make transactions faster.
4. Is UMYR already approved for commercial use?
The collaboration does not itself constitute a commitment to launch UMYR or confirmation of regulatory approval. The parties have stated that further regulatory engagement and definitive agreements are required.
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