Singapore's central bank is weighing whether to recognize a limited number of foreign-issued stablecoins under proposed amendments to the country's payments law, a move that could signal a shift toward deeper cross-border integration of digital assets.

The Monetary Authority of Singapore (MAS) has opened a public consultation on changes to the Payment Services Act. The proposals would formalize Singapore's stablecoin framework and introduce additional safeguards for both issuers and users. Feedback on the consultation will be accepted until Oct. 16.

Foreign Stablecoins Could Gain Limited Recognition

MAS is considering granting recognition to selected foreign-issued stablecoins that operate under regulatory frameworks comparable to Singapore's own rules. The approach would not provide automatic recognition for overseas tokens.

The central bank is examining in particular the potential use of such stablecoins in cross-border wholesale payments. It is also weighing rules for stablecoins jointly issued by Singaporean and foreign entities.

Under the proposed framework, recognized stablecoins would be required to meet strong safeguards covering areas such as reserves, redemption, and regulatory oversight. MAS also aims to strengthen financial stability protections through stress testing, recovery planning, and orderly wind-down requirements.

The proposal comes as regulators around the world are developing divergent approaches to foreign stablecoins. The EU's Markets in Crypto-Assets (MiCA) regulation took full effect in 2024 and sets its own requirements for fiat-referenced stablecoin issuers, while the United States enacted the GENIUS Act in 2025 establishing federal rules for payment stablecoins. The EU also has rules restricting the use of non-compliant foreign stablecoins within its market. Greater regulatory compatibility could make cross-border digital payments easier while preserving oversight of issuers and their reserves. A next step to watch is which jurisdictions MAS deems comparable, since that would effectively determine which overseas stablecoins can reach Singapore's market.

MAS Tightens Standards for Regulated Tokens

The proposed framework would permit only licensed issuers to market their tokens as "MAS-regulated stablecoins." Issuers would need to maintain sufficient capital and ensure that users can redeem tokens at their original value.

The rules would also mandate disclosures about stablecoin arrangements and introduce additional protections for customer funds. MAS is further considering prohibiting interest payments on regulated stablecoins.

Stablecoins that fall outside the framework would continue to be treated as digital payment tokens under Singapore's existing regime. As a result, foreign recognition would constitute a specific regulatory pathway rather than unrestricted access to the Singapore market.

The consultation underscores Singapore's effort to balance financial innovation with consumer protection and financial stability as stablecoins become an increasingly important part of global payments. It builds on MAS's stablecoin framework finalized in August 2023, which set out requirements for Singapore-backed single-currency stablecoins, and on the central bank's broader experimentation with digital assets, including Project Guardian, its industry pilot program exploring asset tokenization in financial markets.