ARACORE and Malaysian blockchain infrastructure company TEIZA have signed an MOU to explore institutional stablecoin payments and settlement between Korea and Malaysia, targeting financial institutions and fintech companies as both markets develop new digital-payment infrastructure.

ARACORE and TEIZA target institutional cross-border payments

ARACORE, the U.S. subsidiary of blockchain and AI company BPMG, has signed a memorandum of understanding with Malaysian blockchain infrastructure provider TEIZA to explore stablecoin-based payment and settlement models between Korea and Malaysia.

The proposed collaboration will combine ARACORE’s Institutional Settlement Network (ISN) with TEIZA’s Malaysian digital infrastructure and institutional network. The companies intend to identify financial institutions, fintech companies and payment partners that could participate in potential cross-border payment use cases.

Rather than announcing a live payment product, the agreement establishes an exploratory framework. ARACORE and TEIZA plan to identify transaction requirements, evaluate where stablecoins could provide a practical settlement function and potentially develop proof-of-concept initiatives before considering broader deployment.

That approach mirrors the direction of Malaysia’s own digital-finance experimentation. Bank Negara Malaysia’s Digital Asset Innovation Hub has onboarded three initiatives for 2026 involving ringgit stablecoins and tokenised deposits, with a focus on wholesale payments, including domestic and cross-border transactions and settlement of tokenised assets. The central bank says testing is being conducted in a controlled environment to assess monetary and financial-stability implications.

Institutional settlement infrastructure is the focus

ARACORE describes its ISN as an infrastructure layer connecting banks and other financial institutions with liquidity providers, on- and off-ramp providers and settlement partners.

The network is intended to coordinate the institutional settlement process across participating entities. In the proposed Korea-Malaysia collaboration, that infrastructure would be paired with TEIZA’s local network to identify potential participants and transaction flows.

The distinction between institutional settlement infrastructure and consumer cryptocurrency payments is important. The proposed initiative is aimed at financial institutions and fintech companies rather than simply giving individuals another way to transfer cryptocurrency.

For businesses operating across borders, settlement infrastructure has to address more than the transfer of a digital asset. Liquidity, foreign-exchange conversion, compliance, transaction monitoring, reconciliation and connections to regulated financial institutions all become part of the operating model.

ARACORE and TEIZA have not announced specific participating banks, transaction volumes, stablecoins or launch dates for a production service. Those details are expected to depend on the outcome of the proposed use-case assessment and any subsequent pilots.

Malaysia is building digital payment connectivity

The partnership enters a Malaysian payments market that has already invested heavily in interoperable digital infrastructure.

Bank Negara Malaysia reported that Malaysia had 29 live instant-payment linkages across the region in 2025 as part of efforts to make cross-border payments faster and more accessible. The central bank also said e-remittance services provided by licensed remittance providers increased 70.1% to RM31.6 billion in 2025, accounting for 51.8% of outward remittances.

Malaysia has also completed its transition to ISO 20022 for cross-border payment transactions, according to BNM. The messaging standard provides richer structured payment data and is intended to improve interoperability, transparency and reconciliation.

This infrastructure creates a relevant backdrop for stablecoin experiments. A blockchain-based settlement layer would need to coexist with established payment systems rather than operate in isolation.

BNM’s Digital Asset Innovation Hub is also explicitly examining tokenised money. The central bank says it intends to provide greater clarity on the use of ringgit stablecoins and tokenised deposits by the end of 2026.

Stablecoins move from crypto product toward settlement tool

The Korea-Malaysia proposal reflects a broader change in how stablecoins are being evaluated by the financial industry.

Initially associated primarily with cryptocurrency trading, stablecoins are increasingly being considered for payments, treasury operations and settlement because they can transfer value on blockchain networks while maintaining a reference to a fiat currency.

The institutional challenge is making those assets compatible with existing financial controls. Banks and regulated fintech companies require clear rules around custody, redemption, liquidity, identity verification, transaction monitoring and settlement finality.

Malaysia’s central bank has highlighted similar considerations. Its 2026 digital-asset work is designed to test real-world applications while assessing monetary and financial stability.

The country’s policy work also includes asset tokenisation and wholesale digital-money experimentation. BNM says its 2025 Project Mawar examined how wholesale central bank digital currency and distributed-ledger technology could improve interbank settlement.

TEIZA brings regional network access

TEIZA’s role in the collaboration is primarily centered on local infrastructure and institutional relationships. The company says its technology is designed for governments, financial institutions and enterprises that need to maintain data privacy and meet local regulatory requirements while connecting with blockchain networks.

Its Malaysia Digital Consortium, launched in 2025 as the Malaysia Blockchain Consortium, provides another institutional network around blockchain interoperability, technical standards and regulatory collaboration. According to the supplied company information, the consortium has grown from 19 founding organizations to more than 30 members.

That local positioning could help the proposed initiative identify potential Malaysian financial institutions and fintech participants before any technical pilot is launched.

PoCs will determine the commercial case

The next stage is therefore less about immediate transaction volumes and more about identifying where stablecoins can solve a specific settlement problem.

ARACORE and TEIZA intend to assess potential use cases before pursuing PoCs and pilot projects. If those tests demonstrate practical benefits, the companies say they will consider extending the collaboration into other Southeast Asian markets.

For Financial Technology and Digital Payments, the development illustrates the convergence of blockchain infrastructure with conventional payment networks. The commercial question will be whether stablecoin settlement can deliver measurable improvements in speed, cost, liquidity management or reconciliation while satisfying the regulatory requirements of participating jurisdictions.

The Korea-Malaysia initiative remains at the exploratory stage. Its significance will ultimately depend on which institutions participate, what transaction corridors are selected and whether subsequent pilots can demonstrate a sustainable institutional settlement model.

Market Landscape

Malaysia is developing a multi-track digital-payments ecosystem spanning instant-payment connectivity, ISO 20022 messaging, tokenisation, wholesale CBDC research and controlled stablecoin experimentation. BNM says 29 regional instant-payment linkages were live in 2025, while its Digital Asset Innovation Hub is testing ringgit stablecoins and tokenised deposits in 2026.

The ARACORE-TEIZA initiative therefore enters an established Digital Payments Platforms and Blockchain Financial Technology environment. Its potential differentiator is the institutional settlement layer connecting financial institutions, liquidity providers and blockchain-based assets.

Top Insights

• ARACORE and TEIZA will explore institutional stablecoin payment and settlement models connecting financial institutions and fintech companies in Korea and Malaysia.
• The initiative is currently exploratory, with potential proof-of-concept projects dependent on identifying viable transaction demand and participating institutions.
• Malaysia had 29 live regional instant-payment linkages in 2025, providing established infrastructure alongside emerging blockchain settlement experiments.
• Bank Negara Malaysia is testing ringgit stablecoins and tokenised deposits through its Digital Asset Innovation Hub during 2026.
• The collaboration could eventually expand into Southeast Asia if initial use cases demonstrate practical settlement and compliance benefits.

Get in touch with our fintech expert