The Monetary Authority of Singapore ( MAS ) has announced a new regulatory framework for stablecoins, intending to officially implement a single-currency stablecoin system by amending the Payment Services Act. If these regulations are implemented, the role of compliant stablecoins in payments and digital finance will become clearer.
Limited to anchoring Neo or G10 currency.
According to the proposal, only issuers that meet the requirements and obtain a license will be allowed to label their tokens as “MAS Regulated Stablecoins.” Such tokens must be pegged to the Singapore dollar or G10 currencies, such as the US dollar, euro, etc.
The issuer is also required to maintain a 100% reserve with assets that are secure and highly liquid, in proportion to the scale of the stablecoins in circulation. Holders should be able to exchange them for the corresponding fiat currency at face value within 5 working days.
Prohibition of paying interest to holders
The draft proposes that MAS-regulated stablecoins shall not pay interest to their holders, nor shall they provide any other similar income arrangements. Regulators hope to distinguish stablecoins from savings, financial management, or investment products, in order to prevent users from holding such tokens primarily for the purpose of earning income.
Deputy Director MAS stated that this framework is aimed at providing clear regulatory arrangements for stablecoins that meet high standards of value stability and governance requirements.
Those who do not meet the standards will still be managed according to DPT.
If the stablecoin issuer cannot meet the above conditions, their tokens will not be able to use the “MAS Regulated Stablecoin” label; instead, they will continue to be regarded as digital payment tokens (DPT), and will be subject to the corresponding rules applicable to other crypto assets.
This means that Singapore is attempting to divide the stablecoin market into two categories: compliant payment products and general cryptocurrency tokens, in order to reduce the identification costs for users and to facilitate access for institutions.
Comments are open until October 16th.
MAS is also reserving space for cross-border use. Stablecoins issued jointly by Singaporean institutions and overseas companies may also be included in this framework, provided that the related risks are properly managed; for wholesale cross-border purposes, MAS also plans to recognize a small number of stablecoins that are subject to comparable overseas regulatory regimes.
The public consultation for this round will close on October 16, 2026. MAS Subsequently, feedback will be evaluated to decide whether to proceed with the revision of the Payment Services Act and to enter the legislative process in Singapore.
