Central Banks Join Initiative to Standardize Digital Assets
Financial institutions can now use a unified framework for cross-border stablecoin and tokenized deposit settlements.
Updated on Oct. 23, 2026 in Financial Services
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Bank Negara Malaysia and the Bank of Thailand have joined the BLOOM initiative, a project launched by the Monetary Authority of Singapore to standardize cross-border stablecoin and tokenized deposit usage. This collaboration enables financial institutions to streamline international payments by reducing the need for bilateral agreements.
Why it matters
The initiative aims to lower operational costs and accelerate time-to-market for financial services by creating a unified framework for digital asset transfers. By joining, these central banks are providing a regulatory pathway for institutions to scale cross-border stablecoin and tokenized deposit adoption.
Bank Negara Malaysia is currently managing three distinct initiatives focused on testing ringgit stablecoins and tokenized deposits. These efforts complement the broader BLOOM program, which seeks to integrate diverse financial institutions including Mastercard, Visa, and Ripple.
The players
Bank Negara Malaysia
The central bank of Malaysia responsible for monetary policy, financial stability, and the regulation of banking institutions.
Bank of Thailand
The central bank of Thailand that oversees national financial policy and the development of the nation's digital payment infrastructure.
Monetary Authority of Singapore
The central bank and integrated financial supervisor of Singapore that launched the BLOOM initiative.
The details
BLOOM functions by providing a shared infrastructure for institutions to handle cross-border payments using stablecoins and tokenized deposits. Instead of navigating unique, fragmented legal and technical arrangements for every counterparty or market, firms can operate within a centralized, policymaker-backed framework. This reduces the friction typically associated with institutional digital asset settlements.
Timeline
2021: Project Orchid began exploring digital Singapore dollar use cases.
October 2025: The Monetary Authority of Singapore launched the BLOOM initiative.
February 2026: Bank Negara Malaysia announced three testing initiatives for stablecoins and tokenized deposits.
October 18, 2026: Bank Negara Malaysia and the Bank of Thailand joined BLOOM.
Market Landscape
BLOOM builds directly upon the experimental foundation set by Project Orchid in 2021. The expansion marks a shift from isolated pilot programs to a collaborative regional infrastructure for tokenized asset liquidity.
Financial operators should monitor the specific technical standards and compliance frameworks emerging from BLOOM as they may define the regional requirements for future stablecoin and tokenized deposit services. Firms currently managing international payment flows should assess how these developments might reduce reliance on traditional correspondent banking networks.
The takeaway
The addition of major Southeast Asian central banks to the BLOOM initiative signals an intent to transition from experimental sandboxes to a functional, multi-national digital payment network. Operators should track the evolving interoperability standards for tokenized deposits as potential operational benchmarks.
Further reading
For broader trends in digital asset regulation and payment infrastructure, explore our Financial Services section.
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