Malaysia king’s son launches ringgit-backed stablecoin

The eldest son of Malaysia’s billionaire king has unveiled plans to launch a stablecoin pegged to the Malaysian ringgit, joining the push for stablecoin use in the Asia-Pacific region. 

According to Bloomberg’s exclusive report, citing company officials on Tuesday, the new token, named RMJDT, will provide businesses and consumers with a faster and more secure way to transact digitally.

Bullish Aim Sdn., the private company behind the project, is chaired and owned by Ismail Ibrahim, the son of Sultan Ibrahim Iskandar of the Johor royal family. People familiar with the matter, who requested anonymity, confirmed that RMJDT will be backed by local-currency cash deposits and short-term Malaysian government bonds.

“Our vision is for this stablecoin to become the standard for crypto-based payments in Malaysia by empowering the economy and providing a faster, safer, and more efficient way to transact,” Bullish Aim’s managing director, Lion Peh, said in a statement earlier today.

RMJDT will be issued on Zetrix, a blockchain platform developed by Malaysian company Zetrix AI Bhd. Zetrix technology embeds the Malaysian Blockchain Infrastructure, a government-backed platform for digital services, which debuted in April.

Ismail Ibrahim is the regent of Malaysia’s southernmost state, Johor, who will oversee the initiative during his father’s five-year term as Malaysia’s king. Bullish Aim also plans to establish a digital-asset treasury company, starting with an initial 500 million ringgit ($121 million) investment in Zetrix tokens. 

According to CoinGecko, Zetrix’s native coin is trading at around $12.60, down 42% from its all-time high of over $22 in November 2024. 

Asia’s regional momentum for stablecoins

The Bullish Aim stablecoin plan comes against the backdrop of private tech companies in Asia revealing their interest in stablecoins this year. The Chinese special administrative region of Hong Kong was among the first jurisdictions on the continent to introduce a regulatory framework for issuers in July. 

Federal authorities in other countries, including South Korea, Thailand, and the Philippines, are also updating rules for digital tokens pegged to local currencies. Some of the push for stablecoins was sparked by the United States’ “change of heart” towards digital currencies, influenced by US President Donald Trump’s pro-crypto administration.

In July, US regulators established guidelines for tokens pegged to the dollar known as the GENIUS Act, following a January executive order from the Oval Office that gave dollar-backed cryptos a policy priority. 

“The Genius Act has opened the floodgates for stablecoin adoption. Whether you support it or not, stablecoins are now unavoidable,” Benjamin Grolimund, general manager for the UAE at crypto exchange Flipster, said in an interview with Bloomberg in August.

In Malaysia, Prime Minister Anwar Ibrahim stated in April that the government welcomes discussions and consultations with relevant agencies, including the securities regulator, Bank Negara Malaysia, and the Ministry of Digital, to discuss cryptocurrency development.

Malaysia, South East Asia, crackdown on mining electricity fraud

While the region embraces digital tokens, Malaysian authorities have been fighting off groups taking part in energy-intensive crypto mining. Tenaga Nasional, the nation’s main utility provider, reported losses exceeding $1 billion from illegal power usage by miners between 2020 and August this year, as reported by Cryptopolitan last week.

By early October, authorities had recorded about 3,000 cases of electricity theft, a surge caused by Bitcoin’s climb to record highs before dropping down to $90,000, more than 30% since the liquidation doomsday of October 10.

Since January, Malaysian police have conducted raids on suspected crypto mining operations in coordination with energy regulators and anti-graft agencies. Tenaga Nasional told parliament it had identified 13,827 establishments suspected of illegal mining activities.

“These activities not only threaten user safety, but also jeopardize the nation’s economic stability, increase public safety risks … and pose a serious threat to the national energy supply system,” the utility said in a statement.

Crypto mining in Malaysia and other Southeast Asian countries grew when China imposed a ban within its borders in 2021, previously holding the title of having the world’s largest mining centers. 

The Chinese government cited financial stability concerns and environmental pressures in outlawing the practice. So several neighboring countries, including Malaysia, sought to “fill the gap” by attracting miners with cheap electricity and favorable investment conditions.

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