Singapore opens public consultation on revised stablecoin framework

Sep 1, 2026

The Monetary Authority of Singapore has proposed amendments to the Payment Services Act to codify its stablecoin regulatory framework. Under the draft rules, issuers must maintain 100% reserve backing in segregated accounts and are strictly prohibited from offering interest or yields. The framework also introduces pathways to recognize qualifying foreign-issued stablecoins. A public consultation on the proposed changes is open until October 16, 2026.

MAS stablecoin framework amendments

▪The Monetary Authority of Singapore published proposed amendments to the Payment Services Act on September 1, 2026, to establish a legal basis for regulating stablecoins
▪Stablecoins that fail to meet the proposed Monetary Authority of Singapore standards will continue to be regulated as Digital Payment Tokens under the Payment Services Act
▪The Monetary Authority of Singapore opened a public consultation on the proposed stablecoin regulatory amendments, with feedback from the public and industry participants due by October 16, 2026
▪Under the proposed rules, only licensed issuers satisfying the full single-currency stablecoin framework requirements will be permitted to use the "MAS-regulated stablecoin" designation

Full reserve backing requirements

▪The Monetary Authority of Singapore proposal mandates that stablecoin reserve assets must be held in accounts segregated from the issuers' own funds
▪The proposed framework requires stablecoin reserve assets to be custodied exclusively with licensed financial institutions
▪The proposed rules require stablecoin issuers to maintain reserve assets equal to at least 100% of all outstanding tokens in circulation at all times

Redemption process standards

▪The proposed framework requires stablecoin issuers to conduct stress testing and maintain formal recovery and orderly wind-down plans to protect users during operational difficulties
▪The proposed regulations require that stablecoin issuers allow users to redeem their tokens for the equivalent amount of fiat currency within five business days

Interest payment prohibition

▪The Monetary Authority of Singapore stated that the interest ban is intended to ensure stablecoins are used primarily for payments rather than as investment or savings products
▪The Monetary Authority of Singapore proposed a strict ban on stablecoin issuers paying interest or other yield-like benefits to holders of regulated stablecoins

Foreign stablecoin recognition

▪The proposed recognition of foreign-issued stablecoins under the Singapore framework would focus primarily on cross-border wholesale transactions
▪The proposed framework would allow stablecoins jointly issued by a Singapore entity and a foreign issuer to qualify for the regulated designation if cross-border risks are addressed
▪The Monetary Authority of Singapore is considering a separate recognition pathway for a limited number of foreign-issued stablecoins supervised under comparable overseas regulatory regimes

Global regulatory alignment

▪The global stablecoin market growth has slowed, with the combined supply of six major dollar-pegged stablecoins remaining flat at $277 billion as of August 2026 compared to October 2025
▪The Monetary Authority of Singapore aligned its proposed interest ban with international frameworks, noting that the United States GENIUS Act and the European Union's Markets in Crypto-Assets regulation also prohibit stablecoin yields