Malaysia's central bank launches platform for tokenised bonds and sukuk

Bank Negara Malaysia has launched SSDS+, an issuance, depository and safekeeping platform built in-house to support tokenised bonds and sukuk, according to the central bank. The platform builds on the existing Scripless Securities Depository System (SSDS), Malaysia's central securities depository.

The central bank signalled the move when it set out its tokenisation plans last year, saying it was considering a "common programmable platform". SSDS+ is designed to support tokenised government bonds as well as corporate retail bonds.

Malaysia's groundwork on settlement infrastructure is central to the launch. Its cloud-based real time gross settlement system, RENTAS+, began operating around the clock last year, and its integration with SSDS+ allows transactions to settle in central bank money at any hour. That addresses a common obstacle for jurisdictions adopting distributed ledgers, whose 24/7 operation sits awkwardly with traditional settlement windows.

The launch places a central bank among the institutions building depository infrastructure for tokenised debt, a segment where tokenisation of government and corporate paper has drawn increasing attention from regulators and market participants.