The proposed UMYR stablecoin would enable real-time settlement for tokenised money market funds in a closed institutional arrangement.
Luno Malaysia, Halogen Capital, and Kenanga Investors have partnered to explore the use of a Ringgit-pegged stablecoin, UMYR, as an on-chain settlement instrument for tokenised money market funds.
The partnership was announced at the Luno Institutional Digital Asset Conference in Kuala Lumpur, and the proposed stablecoin would be issued by a ring-fenced entity within the Luno group and backed 1:1 by Ringgit held in a segregated account with a regulated banking partner.
Scarlett Chai, Country Manager (Malaysia), Luno said: “By providing a 1:1 Ringgit-backed, fully segregated settlement instrument, we are showing how on-chain liquidity and real-time DvP settlement can operate seamlessly and responsibly within Malaysia’s existing regulatory framework alongside licensed industry leaders.”
As part of the initiative, Luno would issue and redeem UMYR on a 1:1 basis, and the other partners will participate as use-case fund managers accepting UMYR for subscriptions and redemptions into their tokenised money market funds.
The initiative aims to demonstrate real-time delivery-versus-payment (DvP) settlement, potentially shortening settlement periods associated with current financial rails.
Hann Liew, Founder and CEO, Halogen Capital, commented: “Working within a regulated framework alongside SC-licensed partners ensures we can deliver faster, safer fund operations for institutional participants.”
Datuk Wira Ismitz Matthew De Alwis, Chief Executive Officer, Kenanga Investors Berhad, added: “Paired with next-generation settlement infrastructure, we believe that the initiative will bring the industry much closer to unlocking the full benefits of tokenisation, building on the foundations we established with the launch of Myrra and Malaysia’s first tokenised funds.”
The initiative would operate as a business-to-business (B2B) arrangement amongst whitelisted institutions with no retail participation expected.
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