What Are Stablecoins And Why Malaysia’s Ringgit-Backed RMJDT Matters
Cryptocurrency is often associated with dramatic price swings and speculative trading. Many people still think of digital assets as volatile and impractical for daily use. Stablecoins were created to address this challenge by offering a form of digital currency with a stable value, combining the speed of blockchain payments with the familiarity of traditional money.
Malaysia has recently taken a step into this space with a new stablecoin called RMJDT, pegged to the Malaysian ringgit. This move highlights how stablecoins could play a role not only in local digital finance but also in cross-border transactions and remittances.
Understanding Stablecoins
Stablecoins are a category of cryptocurrencies designed to maintain a steady value over time, typically by being pegged to an underlying asset such as a national currency. In contrast to traditional cryptocurrencies like Bitcoin or Ethereum, whose prices can be highly volatile, stablecoins aim to hold a predictable value that makes them more suitable for payments and everyday use.
For example, a ringgit-backed stablecoin like RMJDT is meant to maintain a 1:1 value with the Malaysian ringgit, so users can transact without worrying about sudden price swings.
How Stablecoins Maintain Their Value
Most widely used stablecoins are fiat-backed, meaning the issuer holds real-world reserves (like cash or short-term government securities) that correspond to the number of stablecoins in circulation. This backing gives people confidence that each digital token represents real value.
These stablecoins operate on blockchain networks, allowing transactions to be recorded securely and transferred directly between participants — often in minutes rather than hours. The blockchain technology also enables near-constant availability, even outside traditional banking hours.
However, not all stablecoins are backed in the same way. Some use other cryptocurrencies as collateral, and others use algorithmic mechanisms to adjust supply automatically. All of these methods aim to keep value stable, but each comes with its own risks and benefits.
So Why Do Stablecoins Matter?
Because stablecoins hold a consistent value, they are often described as a form of “digital cash.” They can be sent between individuals almost instantly, stored in digital wallets, and used for online transactions without the price volatility associated with other cryptocurrencies.
This makes them potentially useful for a range of everyday scenarios. For example, stablecoins could be used for online purchases, peer-to-peer payments, or even payroll in digital environments. Their stability also makes them useful within decentralised finance (DeFi) systems for borrowing, lending, and earning yields, where price predictability is important.
The Potential For Cross-Border Finance
One of the most compelling uses of stablecoins is in cross-border money transfers; a space where traditional systems can be slow and expensive. Sending money internationally through banking networks often involves multiple intermediaries, currency conversions, and settlement delays, meaning transfers can take days and incur high fees.
Stablecoins can offer a faster and more cost-effective alternative. Because they operate on blockchains, transactions can settle within minutes and run around the clock. Instead of routing value through several correspondent banks and payment processors, funds can move directly between participants with fewer intermediaries — often at much lower cost.
This can be particularly meaningful for people sending remittances or businesses making cross-border payments, helping increase speed and reduce transaction costs compared with traditional methods.
What RMJDT Could Mean For Malaysians
As mentioned earlier, Malaysia saw the launch of RMJDT in December 2025. This is a ringgit-backed stablecoin issued by Bullish Aim Sdn Bhd, a company chaired by the Regent of Johor, Tunku Ismail Sultan Ibrahim. It is built on Zetrix, a Malaysian Layer-1 blockchain that supports the Malaysia Blockchain Infrastructure.
According to reports, RMJDT is designed to encourage broader international use of the ringgit, especially in cross-border trade settlements, and help attract foreign direct investment into Malaysia’s digital economy.
Alongside the stablecoin rollout, the issuer is establishing a Digital Asset Treasury Company (DATCO) with significant allocations of Zetrix tokens to support blockchain operations and maintain network stability.
This type of initiative aligns with broader trends of tokenising real-world assets and exploring digital currency frameworks under national policies, while operating within a regulated sandbox to ensure oversight and compliance.
Stablecoins offer significant potential benefits for financial innovation. They can enable faster transactions, reduce dependence on legacy payment systems, and improve financial inclusion by making digital payments more accessible. Their programmable nature also opens the door to automated and efficient business flows.
At the same time, they come with risks and challenges. Regulatory frameworks are still evolving in many areas, and transparent reporting of reserves and governance is essential to maintain trust. Central banks and international bodies have also issued cautions about stablecoin risks relating to monetary policy, oversight, and financial stability; underscoring the importance of careful regulation.
Looking Ahead
Stablecoins are part of a broader transformation in how money and financial infrastructure function in the digital age. They do not aim to replace traditional currency but to complement it; offering a new way to move value quickly and efficiently.
With the launch of RMJDT, Malaysia joins a global movement toward integrating tokenised money into mainstream finance, potentially reshaping how Malaysians transact within the digital economy and across borders.
