The Monetary Authority of Singapore (MAS) has proposed a new stablecoin issuance license as part of amendments to the Payment Services Act, the 2019 law that serves as Singapore’s primary framework for regulating payment services, including digital payment token services. Under the plan, only licensed issuers would be permitted to label their tokens as “MAS-regulated stablecoins.” Licensed issuers would be required to maintain 100% reserve backing for their tokens and to refrain from offering interest on holdings. The regulatory initiative is intended to strengthen consumer trust and stability in the growing stablecoin market, and it builds on MAS’s consultation work on stablecoin regulation that the central bank has pursued since 2022, culminating in a stablecoin regulatory framework finalized in August 2023 for single-currency stablecoins pegged to the Singapore dollar or G10 currencies.

Key Development

The proposed stablecoin license would establish robust standards for issuers, including full reserve backing of tokens and adherence to transparency rules governing redemption policies. These measures are aimed at ensuring that every stablecoin can be redeemed at its promised value, reinforcing user trust and potentially supporting wider adoption of stablecoins in the region. The broader crypto market is currently displaying mixed signals, with momentum varying across major assets. Singapore’s move also comes as other jurisdictions advance their own stablecoin rules — the European Union’s Markets in Crypto-Assets (MiCA) regulation took full effect in December 2024, and the United States enacted the GENIUS Act in 2025 establishing federal reserve and disclosure requirements for payment stablecoins — placing Singapore within a broader global trend toward formal stablecoin licensing regimes.

Key Details

Under the proposed license:

• Issuers must maintain 100% reserves for stablecoins.
• Issuers must implement transparent redemption policies.
• Only licensed issuers may label their tokens as MAS-regulated.
• The MAS aims to enhance consumer confidence in stablecoins.
• The proposal reflects a growing regulatory focus on crypto in Singapore.

For reference, the announcement was shared on X by Wu Blockchain, and the original report is available on Coinfomania.

Market Context

Stablecoin trading volumes have not been reported at this time, reflecting a cautious market environment. The proposal could shift trader preference toward regulated stablecoins, as regulatory clarity tends to attract institutional interest. Singapore’s stablecoin landscape is evolving rapidly, and the new regulations are likely to carry significant implications for market participants.

The Monetary Authority of Singapore oversees the nation’s financial sector, with a mandate to ensure stability and consumer protection. Its jurisdiction over stablecoins arises from the need to regulate this expanding segment of the cryptocurrency market, which presents distinct risks to financial stability and investor protection. The prohibition on licensed issuers paying interest reflects MAS’s stated position, articulated in its 2023 framework, that stablecoins should function as a medium of exchange rather than an interest-bearing investment product, a stance that distinguishes Singapore’s approach from jurisdictions where regulated stablecoin issuers share yield with holders.

What Comes Next

Market observers will be watching for further developments on the MAS’s proposals and their impact on existing stablecoin projects. Before taking effect, the amendments to the Payment Services Act would need to pass through Singapore’s parliamentary process, providing a window for industry feedback. The prospect of increased regulation could raise compliance costs for issuers, affecting their market strategies. The enforcement of these regulations may also establish new benchmarks for stablecoin performance and utility within the broader financial ecosystem.

This article does not constitute financial advice.