Key Takeaways
- • Luno Malaysia, Halogen Capital, and Kenanga Investors have announced a strategic collaboration to develop UMYR, a fully reserved Ringgit-pegged stablecoin, for settlement of tokenised money market fund transactions announced at LIDAC 2026 in Kuala Lumpur on September 24, 2026.
- • UMYR will enable real-time Delivery-versus-Payment (DvP) settlement for fund subscriptions and redemptions, significantly reducing settlement windows compared to conventional banking rails.
- • The stablecoin will be issued by a dedicated, ring-fenced entity within the Luno group and backed one-for-one by Malaysian Ringgit held in a segregated account with a regulated banking partner, ensuring full reserve backing.
- • All three collaborating entities hold relevant Securities Commission Malaysia licenses: Luno operates as a Recognised Market Operator (Digital Asset Exchange), while Halogen Capital and Kenanga Investors hold Capital Markets Services Licences and currently operate tokenised funds and mandates.
- • Halogen Capital and Kenanga Investors will serve as initial use-case fund managers, accepting UMYR for subscription and redemption settlements into their tokenised money market funds, demonstrating real-world application of the settlement infrastructure.
Summary
Malaysia's digital asset ecosystem is advancing its tokenisation infrastructure through a coordinated effort between three Securities Commission-licensed entities. Luno Malaysia, the country's leading digital asset exchange, has partnered with asset managers Halogen Capital and Kenanga Investors to explore UMYR, a Ringgit-pegged stablecoin designed specifically for on-chain settlement of tokenised fund transactions. The collaboration was formally announced on September 24, 2026, at the Luno Institutional Digital Asset Conference (LIDAC 2026) in Kuala Lumpur.
The initiative addresses a structural inefficiency in conventional fund settlement processes. Current redemption and subscription settlements operate on extended timelines inherent to traditional banking infrastructure. By utilizing UMYR for on-chain settlement, the collaboration aims to achieve real-time Delivery-versus-Payment functionality, materially compressing settlement windows and improving operational efficiency for institutional fund managers and investors. This capability is particularly significant for money market funds, where liquidity and rapid settlement cycles directly impact portfolio management and investor service quality.
The technical structure emphasizes regulatory compliance and risk mitigation. UMYR will be issued by a dedicated, ring-fenced issuance entity within the Luno group, with each unit backed one-for-one by Malaysian Ringgit deposited in a segregated account held with a regulated banking partner. This full reserve backing mechanism eliminates counterparty credit risk on the stablecoin itself and aligns with stringent regulatory expectations for digital asset-backed instruments in Malaysia's regulated environment.
Halogen Capital and Kenanga Investors will function as the initial use-case fund managers, accepting UMYR for subscription and redemption settlements into their tokenised money market funds. Both entities hold Capital Markets Services Licences from the Securities Commission Malaysia, positioning them to bridge traditional asset management with blockchain-native settlement infrastructure. This dual licensing approach—combining Luno's recognized market operator status with the fund managers' CMSL credentials—establishes a regulatory-compliant framework for institutional tokenised fund operations in Malaysia's jurisdiction.
The initiative addresses a structural inefficiency in conventional fund settlement processes. Current redemption and subscription settlements operate on extended timelines inherent to traditional banking infrastructure. By utilizing UMYR for on-chain settlement, the collaboration aims to achieve real-time Delivery-versus-Payment functionality, materially compressing settlement windows and improving operational efficiency for institutional fund managers and investors. This capability is particularly significant for money market funds, where liquidity and rapid settlement cycles directly impact portfolio management and investor service quality.
The technical structure emphasizes regulatory compliance and risk mitigation. UMYR will be issued by a dedicated, ring-fenced issuance entity within the Luno group, with each unit backed one-for-one by Malaysian Ringgit deposited in a segregated account held with a regulated banking partner. This full reserve backing mechanism eliminates counterparty credit risk on the stablecoin itself and aligns with stringent regulatory expectations for digital asset-backed instruments in Malaysia's regulated environment.
Halogen Capital and Kenanga Investors will function as the initial use-case fund managers, accepting UMYR for subscription and redemption settlements into their tokenised money market funds. Both entities hold Capital Markets Services Licences from the Securities Commission Malaysia, positioning them to bridge traditional asset management with blockchain-native settlement infrastructure. This dual licensing approach—combining Luno's recognized market operator status with the fund managers' CMSL credentials—establishes a regulatory-compliant framework for institutional tokenised fund operations in Malaysia's jurisdiction.
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