KUALA LUMPUR (Feb 25): DRB-Hicom Bhd (KL:DRBHCOM) is exploring the potential launch of a ringgit-backed stablecoin as part of a broader push to integrate blockchain technology across its automotive, banking and logistics businesses.

The group on Wednesday signed a memorandum of collaboration with UK-based Geno Group Ltd to deploy enterprise-grade blockchain solutions in phases. The move signals a digital overhaul of DRB-Hicom’s sprawling portfolio, which includes national carmaker Proton, Pos Malaysia, and Bank Muamalat.

“In parallel, the parties will develop the infrastructure for a ringgit-backed stablecoin to be issued and operated on a permissioned blockchain framework, designed initially for application within the DRB-Hicom ecosystem and, where appropriate, selected external participants,” said DRB-Hicom and Geno in a joint statement. Geno is a technology company that specialises in blockchain-as-a-service infrastructure and digital financial solutions.

The stablecoin initiative will address operational needs such as programmable business-to-business settlement and scalable digital settlement that may integrate with existing regulated banking rails and Malaysia’s financial market infrastructure, they said.

The partners will also evaluate tokenised deposit use-cases issued by licensed banking institutions and potential interbank settlement models.

“This memorandum of collaboration sets a strong foundation to deploy enterprise blockchain and to pioneer an industrial-scale ringgit stablecoin anchored in the real-economy.

“Together, DRB-Hicom and Geno will build solutions that are secure, scalable, and designed to deliver operational success for Malaysia’s financial and industrial transformation,” they said.

At the time of writing, shares in DRB-Hicom were down one sen or 0.87% at RM1.14, valuing the group at RM2.2 billion.