CIMB Group Holdings Berhad, a leading Malaysia-based financial institution, has unveiled a groundbreaking initiative to develop tokenized sukuk issuances, marking a significant step toward modernizing the Islamic finance sector.
This move aligns with Malaysia’s national agenda to expand the adoption of tokenization technology across its financial ecosystem, as announced by CIMB on December 23, 2025.
Driving Innovation in Islamic Finance
The initiative, part of a phased rollout under the Securities Commission Malaysia’s (SC) industry pilot program on securities tokenization, will focus on tokenized assets, settlement systems, and next-generation payment rails.
By integrating blockchain technology, CIMB aims to enhance transparency, efficiency, and accessibility in the issuance of sukuk, which are Shariah-compliant bonds critical to Islamic finance.
Historically, sukuk have played a vital role in funding infrastructure and development projects, with global issuances reaching US$65.6 billion in 2025, reflecting a 24.5% increase year-on-year, according to recent industry reports.
A Vision for Digital Capital Markets
The adoption of tokenized sukuk could redefine Malaysia’s position as a hub for Islamic finance innovation, building on its long-standing reputation in the sector.
This initiative is expected to attract a new wave of investors by reducing costs and improving liquidity in the digital capital markets.
Looking ahead, CIMB’s collaboration with Bank Negara Malaysia (BNM) to join the Digital Asset Innovation Hub underscores its commitment to shaping the future of financial services in the region.
The broader impact of tokenization could extend beyond sukuk, potentially transforming other asset classes and fostering greater financial inclusion across Southeast Asia.
As global markets increasingly embrace digital transformation, CIMB’s efforts may inspire similar innovations in the Gulf Cooperation Council (GCC) region, where sukuk markets are also exploring digital formats.
Industry experts predict that tokenized financial instruments could attract assets under management exceeding US$600 billion by 2030, highlighting the immense potential of this technology.
CIMB’s pioneering step is a testament to Malaysia’s forward-thinking approach, positioning the nation at the forefront of the global fintech revolution.
Maria Lourdes
