Hedera Emerges as Institutional Tokenization Rail as Malaysia Advances Asset Tokenization Agenda
- Malaysia is positioning itself to become a global tokenization hub, led by the central bank, and Hedera has emerged as a frontrunner on the infrastructure side.
- With native-level token logic under the Hedera Token Service, Hedera offers a more secure protocol with predictable fees, high throughput, and fast transactions.
With tokenization projected to be a multi-trillion-dollar sector within the next five years, Malaysia is investing in the technology as it seeks to become a regional leader in the digitization of real-world assets. The initiative is being spearheaded by the country’s central bank, and Hedera has emerged as the frontrunner to anchor this real-world tokenization push.
According to Jassim Puthucheary, the founder of Web3 infrastructure provider TrustChain Labs, asset tokenization is no longer a fringe innovation, “but a serious financial market evolution.” Puthucheary revealed that his company recently met with officials from Bank Pembangunan Malaysia Berhad, Malaysia’s $7.5 billion national development bank, to discuss tokenization.
In Malaysia, tokenization is viewed as a technology that should enable existing institutions to become more efficient, not replace them. This eliminates the long-standing conflict between legacy financial institutions and the crypto sector, which has often treated competition as a zero-sum game. Globally, more blockchain projects are announcing partnerships with traditional financial firms, such as Chainlink and JPMorgan, Ferrari and Algorand, and BlackRock and Polygon, as we have reported.
Hedera was the main decentralized ledger technology the two parties explored, Puthucheary added. The network’s white-labelled tokenization platform is permissioned by design, puts compliance at its core, and is “architected to integrate with regulated financial institutions rather than disrupt them,” he noted, adding:
Can Hedera Beat Ethereum, Solana and BNB Chain in Tokenization?
Hedera is built on hashgraph, not a blockchain. Consensus is reached through asynchronous Byzantine Fault Tolerance, unlike Ethereum and Solana, which rely on proof-of-stake. This allows it to be permissioned by design, and according to industry expert Marco Salzmann, controlled access and enforceable rules are a requirement for institutional users, not a downside.
Hedera also allows developers to build compliance rails into their applications, including anti-money laundering and know-your-customer. For financial institutions, this is a primary consideration as banking remains one of the most strictly regulated sectors.
Salzmann added:
Despite recent progress, Hedera still trails market leaders Ethereum, BNB Chain and Solana in the tokenization race. Ethereum remains the market leader with a 65% dominance; it has 380 projects worth $12.5 billion, data from rwa.xyz shows. At 10%, BNB Chain is second, with Solana, Stellar, and Arbitrum completing the top five.
HBAR trades at $0.1123, dipping 4% in the past day for a $4.8 billion market cap amid a broader market drop that saw the overall market value shrink by $300 billion.
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