Luno joins Halogen, Kenanga to explore ringgit-pegged stablecoin for fund settlement

Luno’s collaboration with the fund managers aims to demonstrate real-time delivery-versus-payment (DvP) settlement for fund subscriptions and redemptions.

The approach is expected to significantly shorten traditional settlement windows and enhance capital efficiency for institutional investors.

Luno country manager Scarlett Chai said infrastructure such as UMYR is essential as the local digital asset ecosystem transitions from foundational setup to institutional capability.

“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,” Chai said at the Luno Institutional Digital Asset Conference 2026.

Halogen Capital founder and CEO Hann Liew noted that settlement remains the critical next step for fund tokenisation in the domestic market.

“Testing UMYR as a dedicated settlement instrument aligns perfectly with our vision for modern fund management,” Liew said.

Kenanga Investors Bhd CEO Ismitz Matthew De Alwis said the project complements existing fund tokenisation initiatives.

“Paired with next-generation settlement infrastructure, we believe the initiative will bring the industry much closer to unlocking the full benefits of tokenisation.”

Luno CEO James Lanigan noted that while more investments around the world are moving onto the blockchain, digital payment systems in local currencies such as the ringgit are still missing.

“Non-US dollar stablecoins are a huge growth opportunity. Even though real-world trading happens in many different currencies, almost all digital cash on the blockchain is currently stuck using US dollars.”

The digital ringgit (UMYR) test will run as a private, closed system only for pre-approved companies, with no access for regular retail investors.

The digital currency will be issued by a dedicated firm under Luno and backed one-for-one by actual ringgit held in separate, protected bank accounts in Malaysia.