Singapore’s stablecoin consultation closed at 11.59pm local time on 16 October with a proposed statutory licensing framework for the “MAS-regulated stablecoin” label. The package combines reserve and redemption requirements with an interest ban, protection of customer funds before issuance, and new routes for some cross-border structures.[1][2]
The core perimeter covers single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency. Only eligible licensed issuers would be able to use the regulated label; other stablecoins would continue to fall under the digital-payment-token framework. The proposals build on the policy framework MAS finalised in 2023 and still require final rules and legislation.[1][3]
Redemption connects the reserve rules to the customer
What the legislation is intended to implement
| Area | Established framework | 2026 proposal or clarification |
|---|---|---|
| Reserve backing and value stability | High-quality reserve assets and audit/disclosure requirements support the peg. | Legislation would give the framework formal effect under the Payment Services Act.Source 3Source 1 |
| Capital and liquidity | Issuers must maintain minimum base capital and liquid assets. | Stress testing and recovery planning would add forward-looking resilience controls.Source 3Source 1 |
| Redemption | Par redemption within five business days of a valid request. | The statutory framework would preserve redemption as a central condition of the regulated label.Source 3Source 1 |
| Interest | The 2023 framework centred on value stability rather than yield. | MAS proposes to prohibit interest on MAS-regulated stablecoins.Source 1 |
| Pre-issuance customer money | General payment-services safeguards apply where relevant. | Customer money received before issuance would need to be safeguarded.Source 1 |
The five-business-day par-redemption commitment applies after a valid redemption request. Reserves, liquid assets, stress tests and recovery planning support the issuer’s ability to honour that commitment when requests rise together. Safeguarding customer money before coins are issued would also cover the interval between payment and receipt of the token.[3][2]
Three issuance routes carry different conditions
Three possible cross-border routes
| Route | Proposed treatment | Condition that matters |
|---|---|---|
| Singapore-only issue | Eligible for the MAS-SCS framework if the issuer meets the licensing and prudential requirements. | The token must be issued in Singapore and pegged to SGD or a G10 currency.Source 1 |
| Joint Singapore and foreign issuance | Could receive the MAS-regulated label. | MAS proposes this only where risks from multi-jurisdictional issuance are sufficiently mitigated.Source 1Source 2 |
| Foreign-issued stablecoin | A limited number could be recognised under comparable foreign regimes. | Recognition would not make every overseas stablecoin equivalent automatically.Source 1Source 2 |
Joint issuance makes the redemption chain especially important. Users and counterparties need to identify the entity that owes redemption, where reserves sit, which insolvency law governs them and how supervisors can act across the structure. The proposed route depends on mitigating those risks; limited recognition of certain foreign stablecoins would separately support cross-border wholesale use under comparable frameworks.[2][1]
The proposed interest ban would shape competition around payment utility, access and redemption service rather than an issuer-paid holding yield. The MAS label would identify compliance with the stablecoin framework, while the private issuer would remain responsible for its obligations. It would not guarantee investment returns.[2][1]
MAS also places regulated stablecoins within its wider work on settlement for tokenised finance. That role is distinct from its separate wholesale central-bank digital-money work: the settlement asset and the legal obligor determine who must perform when payment or redemption is due.[4]
Sources & further reading
- MAS consults on legislative amendments to implement its stablecoin regulatory framework Monetary Authority of Singapore · 1 Sep 2026 · Accessed 16 Oct 2026
- Consultation on proposed Payment Services Act amendments for stablecoin regulation Monetary Authority of Singapore · 1 Sep 2026 · Accessed 16 Oct 2026
- MAS finalises stablecoin regulatory framework Monetary Authority of Singapore · 15 Aug 2023 · Accessed 16 Oct 2026
- Building Trusted Foundations for Digital Finance Monetary Authority of Singapore · 9 Oct 2026 · Accessed 16 Oct 2026