In brief
- MAS is finalising stablecoin legislation with emphasis on reserve backing and redemption reliability.
- It will also expand its central bank digital currency trials.
- A new guide on tokenised capital markets products is also set to be published.
Singapore’s financial regulator is preparing to introduce new rules for stablecoins and expand central bank digital currency (CBDC) trials as part of a broader effort to build out its framework for digital assets.
The Monetary Authority of Singapore’s (MAS) managing director, Chia Der Jiun, said Thursday that stablecoins could play a key role in future financial networks if they are properly supervised.
“Unregulated stablecoins have a patchy record of keeping their peg,” Chia told the Singapore FinTech Festival 2025. “Recurrent de-pegging can erode confidence, and trigger runs on other stablecoins.”
“Regulated stablecoins, while nascent, offer the prospect of value stability. Sound and robust regulation of stablecoins will be critical to underpin their stability,” he added. “We have seen national regulations taking shape rapidly. This is an important start. But things can take a wrong turn if there is a proliferation of poorly regulated stablecoins, undermining confidence in others.”
Chia said MAS had finalized the features of its stablecoin regulatory regime and would soon prepare draft legislation. “Under our regime, we have given importance to sound reserve backing and redemption reliability,” he said.
Singapore’s approach to regulating digital finance has balanced between tight standards with industry-led pilots. The new stablecoin rules build on years of sandbox experimentation and projects like Project Guardian, which has tested tokenised foreign exchange, fixed income, and fund transactions since 2022.
Singapore started looking at asset-backed tokens with the launch of Project Guardian in 2022. It collaborated with industry partners to test use cases in FX, funds, fixed income, and showed that tokenization worked and delivered benefits. 24/7 near instant settlement; programmability enabling PvP and DvP; no settlement lags, fewer intermediaries, less pre-funding.
That work has already delivered tangible results. Tokenised bonds and money market funds are being traded on-chain, and banks are offering tokenised cash management services. But, Chia noted, asset-backed tokens have yet to achieve “escape velocity.” To reach that point, he said, there needs to be standardised token formats, interoperable networks and a deep pool of safe settlement assets.
MAS will also publish a guide on the tokenization of capital markets products, offering case studies and disclosure guidance to clarify how tokenised securities fit under existing rules. It is working with international partners, including UK regulators, to harmonise standards for asset-backed tokens.
Chia cautioned that progress will depend on use cases that demonstrate value and stability for clients. “Market participants must bring use cases that demonstrate value and stability,” he said. “They have to build participation and liquidity.”
A “balanced middle” approach
Adrian Wall, CEO of the Digital Sovereignty Alliance, described Singapore’s approach to regulation as sitting in a “balanced middle.”
“MAS combines strict consumer protection with one of the most advanced tokenization programs in the world. Its stablecoin framework is narrower in scope than MiCA but deeper on safety and redemption, positioning MAS-regulated stablecoins as a reliable bridge between fiat and digital assets,” he told Decrypt.
“Singapore is closest to the equilibrium we’d like to see globally: clear standards, shared infrastructure, and controlled experimentation. The opportunity now is to ensure these frameworks are accessible not only to global banks but also to builders and communities who can turn them into everyday value.”
For stablecoin firms in the city, he said MAS had “put stablecoins on a bank-grade footing without killing innovation.”
He added if he could nudge MAS on anything, it would be on access and on-ramps. “The rules are clear, but smaller innovators still struggle to enter pilots or get banking connectivity. I would like to see more graduated pathways into the regime for early-stage firms that meet the spirit of the framework, and clearer guidance on how foreign fiat-backed stablecoins that already meet high standards elsewhere can interoperate with the Singapore ecosystem without creating regulatory gaps,” he said.
Louise Ivan Valencia Payawal, co-founder and CEO of Ryder.id, added that the industry will benefit from MAS pushing even further. “The speech laid out what needs to happen for asset-backed tokens to reach “escape velocity,” but the current pace of implementation and licensing can still slow down innovators who are ready to build today. Faster approvals, clearer timelines, and more detailed guidance on areas like decentralised finance and self-custody would help ensure Singapore does not fall behind markets that are moving aggressively while still maintaining safeguards,” she said.
She added that across jurisdictions, the trade-offs are becoming clearer. “The United States has scale but uncertainty. Europe has harmonisation, but a slower evolution. Hong Kong supports retail participation. Dubai offers permissiveness. Singapore focuses on trust, interoperability, and institutional-grade networks,” she said.
However, Payawal noted, while MAS wants to avoid walled gardens and prevent a fragmented global landscape, “achieving this requires stronger coordination across international regulators and faster adoption of global standards.” She argued that Singapore risks becoming “an advanced testbed without equivalent commercial scale” if other jurisdictions steal a march on it, adding that, “A stronger push to turn pilots into live, industry-wide implementations will be critical if Singapore wants to lead not only in experimentation but in global influence.”
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
