Malaysia Fintech Digital Asset Market Size | 2019-2033

Malaysia Fintech Digital Asset Market Growth and Performance  

• The Malaysia fintech digital asset market size in 2023, stood at US$ XX.62 Billion.
• Furthermore, projections indicate that the fintech digital asset market in Malaysia is poised for sustained growth, with an anticipated annual growth rate of XX.4%.

Malaysia Fintech Digital Asset Market Outlook

Malaysia fintech digital asset market is undergoing a significant transformation, marked by exponential growth in digital asset trading and increased institutional adoption. According to the Securities Commission Malaysia (SC), the average daily trading value on local digital asset exchanges (DAXs) surged to RM38.06 million in 2024, a staggering 155.74% increase from RM14.88 million in 2023. This remarkable growth underscores the rising interest in cryptocurrencies and blockchain-driven financial instruments among Malaysian investors.

One of the most notable milestones in 2024 was the record daily trading value of RM300.39 million on December 3, coinciding with Bitcoin surpassing the US$100,000 mark. This surge was influenced by key global events, including the approval of U.S. spot Bitcoin ETFs and the U.S. presidential election, which heightened investor confidence in digital assets. Despite this impressive growth, digital asset trading in Malaysia still represents only 1.64% of the total domestic equity market, indicating significant room for expansion in the coming years.

Luno continues to dominate the Malaysian digital asset exchange landscape, accounting for over 93% of the aggregate trading volume. However, the entry of new players like Hata, Malaysia’s latest regulated DAX, is introducing competitive elements into the market. Hata offers the lowest trading fees in Malaysia, along with an innovative revenue-sharing affiliate program, making it an attractive option for retail investors. Furthermore, Hata's commitment to holding all digital asset keys within Malaysia enhances security and regulatory compliance, positioning it as a strong contender against established exchanges.

The evolution of Malaysia digital asset market is also reflected in the emergence of tokenized fundraising mechanisms. In 2024, Initial Exchange Offering (IEO) operators launched their first tokens, raising RM48 million through Shariah-compliant investment notes and utility tokens. This development highlights the increasing integration of blockchain technology into Malaysia’s capital markets, offering new avenues for fundraising while adhering to Islamic financial principles.

The adoption of blockchain technology extends beyond trading platforms to real-world asset tokenization. The SC, in collaboration with Khazanah Nasional Berhad, is actively exploring the tokenization of bonds and sukuk, leveraging blockchain’s programmability, transparency, and accessibility. This initiative has the potential to revolutionize Malaysia’s debt market by improving efficiency and broadening investor participation.

Stablecoins are another emerging segment expected to gain traction in Malaysia fintech ecosystem. Regulatory clarity surrounding Ringgit Malaysia-denominated stablecoins is anticipated to accelerate their adoption, enabling seamless digital transactions and fostering financial inclusivity. As businesses and individuals seek more stable digital assets for transactions, stablecoins could bridge the gap between traditional finance and decentralized finance (DeFi) solutions.

The rise of DeFi platforms is another critical trend shaping Malaysia digital asset market. DeFi innovations, such as lending protocols and peer-to-peer financial services, offer greater accessibility and efficiency compared to traditional banking systems. However, regulatory frameworks must evolve to address security concerns and ensure compliance with Malaysia’s financial regulations.

Institutional adoption of digital assets is also gaining momentum, with companies increasingly leveraging blockchain for value creation. The Halogen Shariah Defensive Bitcoin Fund, Malaysia’s first Shariah-compliant Bitcoin investment fund, exemplifies this shift. Combining low-risk Islamic deposits with Bitcoin as a high-growth asset, the fund provides a structured and risk-managed entry point for sophisticated investors. Affin Bank’s involvement as a distributor further bridges the gap between conventional banking and digital asset investment, aligning with its AFFIN Axelerate 2028 Plan.

Despite these advancements, Malaysia fintech digital asset market has faced challenges, particularly during the first half of 2023. The lingering impact of the FTX collapse in late 2022 led to subdued trading activity, as investors exercised caution. However, the latter half of 2023 saw a resurgence in market participation, driven by Bitcoin and Ethereum price rallies and growing interest in crypto ETFs. Retail investors under 45 years old dominated the market, accounting for over 72% of the investor base across regulated DAXs.

The introduction of new digital assets and custodial services further signals the maturing market landscape. In 2023, Malaysian DAXs expanded their offerings to include Avalanche (AVAX) and Polygon (MATIC), increasing the total number of tradable tokens to 11. Additionally, three local digital asset custodians received approvals-in-principle, enhancing the security and credibility of digital asset storage solutions.

Government initiatives and collaborations also play a pivotal role in fostering Malaysia digital asset ecosystem. Events such as the roundtable discussion co-hosted by Jersey Finance and Halogen Capital Sdn Bhd in Kuala Lumpur highlight Malaysia’s commitment to regulatory development and cross-border collaboration. Discussions focused on Jersey’s digital asset fund offerings and the tokenization of real-world assets, emphasizing the growing synergies between international financial hubs and Malaysia.

The broader digital transformation in Malaysia is further reinforced by significant investments from global tech giants. Companies like AWS, Google, and Microsoft have collectively committed US$16.9 billion (RM74.8 billion) to Malaysia’s digital economy. AWS alone plans to invest US$6.2 billion (RM29.2 billion) to establish its Asia Pacific (Malaysia) Region, expected to contribute US$12.1 billion (RM57.3 billion) to Malaysia GDP by 2038. These investments provide a strong foundation for Malaysia fintech and digital asset market to thrive.

As Malaysia positions itself as a regional leader in digital finance, regulatory clarity, technological innovation, and institutional adoption will be key drivers of sustained growth. The evolving landscape presents numerous opportunities for investors, businesses, and policymakers to collaborate in shaping a resilient and inclusive digital asset ecosystem.

Malaysia Fintech Digital Asset Market Scope