CoinDesk
Singapore's Monetary Authority proposed amendments to the Payment Services Act that would require stablecoin issuers to maintain segregated reserves equal to at least 100% of tokens in circulation, held with licensed financial institutions and ringfenced from the issuer's own funds. The rules would also bar issuers from paying interest or any other benefits tied to stablecoin holdings, with MAS framing the tokens as payment instruments rather than investment products.
The proposed framework mirrors the U.S. GENIUS Act and the European Union's MiCA regulation, both of which explicitly prohibit yield. The consultation also opens a narrow door for limited recognition of foreign stablecoins governed by comparable regimes, though the mechanics for jointly issued tokens and transitional treatment of existing Singapore-based issuers remain undefined. The paper closes October 16, with subsidiary legislation to follow at a later date.
Why it matters
The reserve and yield rules tighten the line between regulated stablecoins and the yield-bearing products that have proliferated offshore. MAS deputy managing director Ho Hern Shin framed well-regulated stablecoins as a credible settlement layer for tokenized financial markets, a signal that Singapore wants its regulated tokens competing on payment rails rather than on deposit-like returns. By tracking the GENIUS and MiCA frameworks, MAS is positioning Singapore as a third global anchor for compliant issuance, alongside the U.S. and the EU.
Market impact
For Singapore-based issuers, the rules raise the cost of compliance: segregated custody at licensed institutions, daily or near-daily reserve attestation, and a hard cap on distribution models that rely on yield. For foreign issuers, the recognition pathway creates an on-ramp to one of Asia's most active tokenization hubs, where Ripple is already testing RLUSD inside the MAS BLOOM sandbox for cross-border settlement. The biggest open question is whether the recognition criteria will be narrow enough to function as a moat for Singapore-regulated issuers or wide enough to let established offshore stablecoins in under equivalence.
Frequently asked questions
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What did Singapore's MAS propose for stablecoin issuers?
MAS proposed amendments to the Payment Services Act requiring issuers to hold segregated reserves of at least 100% of tokens in circulation at licensed financial institutions, and to bar any interest or yield on holdings.
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How do the MAS rules compare with U.S. and EU frameworks?
The reserve and yield-ban requirements are aligned with the U.S. GENIUS Act and the EU's MiCA regulation, both of which prohibit stablecoin issuers from paying interest or yield to holders.
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Will MAS recognise foreign stablecoins in Singapore?
The consultation considers limited recognition for foreign stablecoins governed by comparable overseas regimes, but the mechanics for jointly issued tokens and transitional arrangements for existing Singapore issuers are still to be determined.
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When does the MAS stablecoin consultation close?
The current consultation closes on October 16. MAS will consult on subsidiary legislation separately at a later date and has not announced an implementation timeline.
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How are regulated stablecoins already being tested in Singapore?
Ripple is testing its RLUSD stablecoin inside the MAS BLOOM sandbox to explore cross-border settlement, part of a broader MAS initiative to extend settlement capabilities for tokenized bank liabilities and regulated stablecoins.
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