Singapore proposes amendments to stablecoin framework covering foreign issuers and interest payments

The Monetary Authority of Singapore proposed legislative amendments to the Payment Services Act on September 1, 2026, to formalize its stablecoin regulatory framework. The proposals introduce pathways for recognizing foreign-issued and jointly issued stablecoins, while establishing strict safeguards such as a ban on interest payments, mandatory stress testing, and orderly wind-down plans. Public feedback is open until October 16, 2026, as Singapore seeks to integrate trusted stablecoins into its tokenized financial markets.

Payment Services Act amendments

• ▪The Monetary Authority of Singapore proposed legislative amendments to the Payment Services Act on September 1, 2026, to implement its stablecoin regulatory framework.
• ▪Under the proposed amendments, only stablecoin issuers licensed by the Monetary Authority of Singapore can label their tokens as MAS-regulated stablecoins.
• ▪The Monetary Authority of Singapore proposed a new safeguard prohibiting licensed stablecoin issuers from paying interest on regulated stablecoins.
• ▪The Monetary Authority of Singapore is accepting public feedback on the proposed Payment Services Act amendments and related stablecoin policies until October 16, 2026.

Multi-jurisdictional stablecoin issuance

• ▪The joint-issuance proposal revisits the Monetary Authority of Singapore's 2023 stance, which required qualifying stablecoins to be issued solely in Singapore.
• ▪The Monetary Authority of Singapore proposed allowing stablecoins jointly issued by a Singapore entity and a foreign issuer to qualify as MAS-regulated stablecoins if risks are mitigated.

Foreign stablecoin recognition

• ▪The Monetary Authority of Singapore is considering recognizing a limited number of stablecoins issued entirely outside Singapore if they are regulated under comparable overseas frameworks.
• ▪The proposed recognition of foreign-issued stablecoins is intended primarily for cross-border wholesale transactions.

Stress testing requirements

• ▪The Monetary Authority of Singapore proposed requiring regulated stablecoin issuers to maintain recovery and orderly wind-down plans.
• ▪The Monetary Authority of Singapore proposed requiring regulated stablecoin issuers to conduct stress tests.

Consumer protection measures

• ▪Stablecoins that do not qualify under the proposed framework will continue to be treated as digital payment tokens under Singapore's existing regulations.
• ▪The Monetary Authority of Singapore proposed requiring stablecoin issuers to protect customer money received before the corresponding stablecoins are issued.