Singapore proposes new stablecoin rules covering foreign issuers and interest

The Monetary Authority of Singapore has proposed amendments to the Payment Services Act 2019 that would put its stablecoin framework into law while introducing rules for overseas issuers, interest payments and issuer wind-down plans.
Summary

• MAS has proposed Payment Services Act amendments that would put Singapore's stablecoin regulatory framework into law.
• The framework would allow qualifying jointly issued foreign and Singapore stablecoins to receive the MAS regulated designation.
• MAS is considering recognition for a limited number of foreign stablecoins governed by comparable overseas regulatory frameworks.
• Proposed safeguards include an interest payment ban, stress testing, recovery plans and orderly wind down requirements for regulated issuers.
• Public feedback on the proposed amendments and related stablecoin policies is open until Oct. 16.

MAS published the consultation on Sept. 1, seeking feedback on how issuers can qualify under its Single-Currency Stablecoin framework and use the "MAS-regulated stablecoin" label. Responses are due by Oct. 16.

The proposals would implement a framework first finalized in 2023, while extending it to areas that have developed as stablecoins have gained a larger role in payments and tokenized financial markets.

MAS stablecoin rules could cover joint overseas issuance

One of the main proposals would allow a stablecoin jointly issued by a Singapore entity and a foreign issuer to qualify as an MAS-regulated stablecoin, provided risks linked to issuing the token across different jurisdictions are sufficiently addressed.

MAS is seeking views on how such multi-jurisdiction arrangements should operate under the framework.

The regulator is considering a separate route for a limited number of stablecoins issued entirely outside Singapore. Foreign tokens could be recognized when they are supervised under a regulatory framework that MAS considers comparable to Singapore's regime.

Recognition would focus on cross-border wholesale uses, according to the consultation.

The proposals extend work that began in October 2022, when MAS first consulted on rules for single-currency stablecoins. The regulator published its response to industry feedback in August 2023 and established requirements covering reserve assets, capital, redemption and disclosure.

As crypto.news previously reported, the framework applies to single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency. Issuers that meet the required standards can seek recognition for their tokens as MAS-regulated stablecoins.

Stablecoins outside that framework would continue to be treated as Digital Payment Tokens under the Payment Services Act. DPT consumer safeguards include restrictions on trading incentives, financing and leverage, along with limits on locally issued credit card payments.

Singapore has separately tightened rules for crypto businesses providing DPT services. MAS imposed restrictions on incentives and credit-funded crypto trading as part of consumer protection measures introduced after earlier consultations.

MAS proposes interest ban and stress testing

The Sept. 1 consultation proposes new safeguards for issuers seeking the MAS-regulated designation, including a prohibition on paying interest on regulated stablecoins.

Issuers would have to conduct stress tests and maintain plans for recovery and an orderly wind-down if their businesses encounter financial or operational problems.
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MAS is seeking feedback on consumer safeguards covering money received from customers before stablecoins are issued. The proposed protections would be similar to requirements that already apply to licensees operating under the Payment Services Act.

Existing core requirements would remain part of the regime. Issuers would need to comply with standards covering value stability, capital, redemption at par and disclosures to users.

Only licensed issuers operating under the framework would be permitted to describe themselves as licensed MAS-regulated stablecoin issuers or market qualifying tokens as "MAS-regulated stablecoins."

The designation is intended to distinguish qualifying tokens from other cryptocurrencies marketed as stablecoins without being subject to the same MAS requirements for maintaining their value.

MAS Deputy Managing Director for Financial Supervision Ho Hern Shin said the legislative changes would establish regulatory guardrails for stablecoins that meet the regulator's requirements for value stability and governance.

"Trusted and well-regulated stablecoins can serve as a credible settlement asset in tokenised financial markets, while mitigating risks to users and the broader financial system," Ho said.

Stablecoins are moving into Singapore payment systems

The legislative consultation comes as regulated stablecoins are being tested in payment and settlement projects involving financial institutions operating in Singapore.

On Aug. 25, Visa joined the MAS-led BLOOM initiative and selected Nium for a stablecoin settlement pilot involving regulated U.S. dollar and euro-backed tokens. The companies plan to test settlement seven days a week, including weekends and public holidays, across cross-border payment flows.

MAS introduced BLOOM in 2025 to develop settlement arrangements using tokenized bank liabilities and regulated stablecoins. The program covers domestic and cross-border payments, multi-currency settlement and institutional applications such as trade finance and corporate treasury operations.

The initiative followed Project Orchid, under which MAS explored programmable money and potential applications for a digital Singapore dollar through more than 10 trials. Participants in BLOOM have included Circle, DBS, OCBC, Partior, Stripe and UOB.

Stablecoins have moved into retail payment channels as well. OKX Singapore introduced a stablecoin payment service in September 2025 that lets customers use USDT and USDC at merchants accepting GrabPay.

Payments through the service are converted for settlement in Singapore dollars, with StraitsX's XSGD used as a bridge. Merchants receive local currency while the corresponding amount is deducted from a customer's stablecoin balance.

Singapore has spent years developing stablecoin oversight

MAS established the main structure of its single-currency stablecoin regime in 2023 after reviewing responses to its earlier consultation.

The framework set standards for reserve management and value stability while requiring issuers to maintain minimum capital and liquid assets. Redemption requirements were designed to allow users to redeem qualifying stablecoins at par, while disclosure rules covered matters including the mechanisms used to keep a token's value stable.

Only issuers satisfying the full set of requirements can receive the MAS-regulated stablecoin designation.

Singapore has since licensed companies involved in digital asset payments under the Payment Services Act. Paxos Digital Singapore received full MAS approval in 2024, with DBS selected to provide stablecoin custody services for the company.

The regulator has continued granting licenses to crypto companies that meet its requirements while taking action against firms that fail to comply with local rules. Cumberland SG secured a Major Payment Institution license in July 2026, permitting the company to provide regulated digital payment token and cross-border money transfer services in Singapore.

Under the latest consultation, MAS is asking interested parties to submit comments on the proposed Payment Services Act amendments and related stablecoin policy positions by Oct. 16, 2026.
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