KUALA LUMPUR (April 28): Khazanah Nasional Bhd, in collaboration with the Securities Commission Malaysia (SC), has priced Malaysia’s first tokenised sukuk with a nominal value of RM100 million, marking the debut of blockchain-based issuance in the domestic debt capital market.
The issuance was structured under Khazanah’s Sukuk Danum Programme, an Islamic medium-term notes programme of up to RM20 billion, with the inaugural tranche carrying a one-year tenure and based on the Shariah principle of Wakalah bi al-Istithmar.
A tokenised sukuk is a digital representation of a conventional sukuk recorded using distributed ledger technology (DLT), where ownership and transaction data are created in token form on a shared ledger.
The process creates what is effectively a cryptographically secured and immutable digital record, or “digital twin”, of the underlying capital market instrument, potentially allowing more efficient issuance, settlement and record-keeping.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said the exercise was intended to test how digital technology could improve the issuance and management of capital market instruments.
“This tokenised sukuk, in collaboration with the SC, reflects that role by taking a practical step towards exploring how digital technology can improve how we issue and manage capital market instruments.”
"With Khazanah’s position in the market and the SC’s regulatory leadership, we are able to test this in a controlled and credible manner. This is not about introducing a new product for its own sake but about building the foundations for a more efficient and transparent market over time," he added.
SC chairman Datuk Mohammad Faiz Azmi said the initiative was aligned with the Capital Market Masterplan 2026-2030, which seeks to strengthen Malaysia’s bond and sukuk market through innovation, stronger market connectivity and better execution efficiency.
“Tokenisation offers potential to improve transparency, broaden participation and support a more vibrant market, and initiatives such as this allow us to test those possibilities in a controlled and credible manner,” he said.
The pilot was first revealed in March 2025, when Faiz said the SC was working with Khazanah to explore the tokenisation of bonds and sukuk as part of efforts to broaden access to the asset class.
At present, corporate bonds in Malaysia are predominantly issued to sophisticated investors.
Under the Capital Markets and Services Act 2007, sophisticated investors include high-net-worth individuals with net assets of at least RM3 million or investments of at least RM1 million; companies with net assets of RM10 million; as well as institutional investors such as banks, pension funds and insurers.
Speaking in March last year, Faiz said tokenisation could allow investors to buy only a fraction of a bond or sukuk, potentially reducing investment thresholds and widening participation beyond the current sophisticated investor pool.
Malaysia already has a retail framework for direct participation in fixed-income products. The SC introduced the Malaysian retail bonds and sukuk framework in 2012, allowing eligible issuers to offer products to retail investors for trading either on Bursa Malaysia or over-the-counter through appointed banks.
Bonds traded on Bursa Malaysia are typically sold in a minimum board lot of 10 units, and with a principal value of RM100 per unit, the minimum investment size is RM1,000, excluding transaction costs.
The first tokenised sukuk involved institutions across the issuance chain, including CIMB Group Holdings Bhd (KL:CIMB) and Malayan Banking Bhd (KL:MAYBANK) while investors included Credit Guarantee Corporation Malaysia Bhd (CGC), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), OCBC Bank (Malaysia) Bhd and other institutional participants.