Singapore Proposes New Stablecoin Rules for Foreign Issuers and Interest Payments

Highlights:

• Singapore wants to turn its existing stablecoin framework into law under the Payment Services Act.
• The proposed stablecoin rules would give Singapore more oversight of foreign issuers and add protections for users.
• MAS is updating its approach while stablecoins gain a bigger role in Singapore’s payment systems.

Singapore has proposed new stablecoin rules that would formally bring the Monetary Authority of Singapore’s existing regulatory framework into legislation. MAS opened a consultation on Sept. 1 for amendments to the Payment Services Act 2019. The changes also cover foreign issuers, interest payments, and procedures for stablecoin companies facing financial or operational problems. Companies, industry groups, and other interested parties can submit comments to MAS through Oct. 16.

Singapore Proposes Stablecoin License With 100% Reserves, No Holder Interest

The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, has proposed amendments to the Payment Services Act creating a dedicated stablecoin issuance license, with… pic.twitter.com/QDWHpvWqXk

— Wu Blockchain (@WuBlockchain) September 1, 2026

MAS began developing its single-currency stablecoin framework in October 2022 through an earlier public consultation. The regulator reviewed industry responses and finalized the main framework in August 2023. The regime covers qualifying stablecoins that Singapore issuers peg to the Singapore dollar or a G10 currency.

Singapore-based issuers seeking MAS recognition must meet requirements covering reserves, capital, value stability, redemption at par, and user disclosures. An issuer can use the “MAS-regulated stablecoin” label only after its token meets the regulator’s full requirements. The designation helps users identify tokens whose issuers follow MAS rules for financial backing and redemption.

Meanwhile, stablecoins outside the framework will remain digital payment tokens under the Payment Services Act. MAS already restricts trading incentives, financing, leverage, and some credit card payments involving regulated digital payment token services.

Singapore Expands Oversight With New Stablecoin Rules

MAS could let Singapore and foreign companies jointly issue a token that qualifies under its regulated stablecoin regime. However, the companies must show MAS how they would manage risks from issuing the same token across several jurisdictions. MAS is also considering another pathway for a small group of stablecoins that companies issue entirely outside Singapore. The regulator could recognize these tokens when overseas authorities apply safeguards that MAS considers comparable to its requirements.

The proposed rules would prevent issuers in Singapore from offering interest to people who hold MAS-regulated stablecoins. Issuers would also run stress tests to assess whether their businesses could withstand major financial or operational shocks. Each issuer would prepare a recovery plan showing how it could restore normal operations after a serious disruption.

MAS would also require a wind-down plan explaining how an issuer would close its business when recovery becomes impossible. In addition, issuers would need to protect money that customers provide before receiving their stablecoins. The amendments would retain existing requirements covering reserve assets, capital levels, value stability, redemption at par, and disclosures. These standards would remain necessary for issuers seeking recognition under the MAS framework.

Stablecoin Use Grows Across Payments

The proposed stablecoin rules in Singapore come at a time when regulated tokens are gaining a bigger role in payment systems. Visa joined the MAS-led BLOOM initiative on Aug. 25 and selected Nium for a stablecoin settlement pilot. The companies will test regulated dollar-backed and euro-backed stablecoins across cross-border payment flows. The pilot will also test settlement on weekends and public holidays.

MAS launched BLOOM last year to explore payments using regulated stablecoins and tokenized bank liabilities. Before BLOOM, MAS ran Project Orchid to explore programmable money and possible uses for a digital Singapore dollar. The project included more than 10 trials involving different payment applications.

Meanwhile, OKX Singapore launched a service in September last year that lets customers spend USDT and USDC at participating GrabPay merchants. The service deducts funds from customers’ stablecoin balances while merchants receive Singapore dollars.