Capital A, a company founded by AirAsia's founder, is partnering with Standard Chartered Bank to explore issuing a stablecoin backed by the Malaysian Ringgit.

Odaily reports that AirAsia's operator has signed an agreement with Standard Chartered Bank's Malaysian branch to explore issuing a stablecoin backed by the Malaysian ringgit (the Malaysian currency) in the Southeast Asian country. This comes a few days after a member of the Malaysian royal family announced the launch of a similar token.

According to a statement released Friday, Capital A, founded by AirAsia founder Tony Fernandes, signed a letter of intent with Standard Chartered Bank Malaysia to jointly develop and test a stablecoin through the Digital Asset Innovation Centre regulated by Bank Negara Malaysia. The statement indicated that Standard Chartered Bank Malaysia will act as the issuer of the stablecoin, while Capital A may initially pilot wholesale use cases in real-world scenarios. This marks Capital A's first foray into the regulated digital asset space. (Bloomberg)