Overview
- The Monetary Authority of Singapore published a consultation paper on Sept. 1 proposing amendments to the Payment Services Act to convert its 2023 single-currency stablecoin framework into statutory law and it is seeking comments until Oct. 16, 2026.
- Under the proposals only licensed issuers that meet strict reserve, capital, redemption-at-par and disclosure standards could call their tokens “MAS-regulated stablecoins.”
- The draft rules would create a route for jointly issued Singapore-foreign stablecoins and a tightly limited path to recognise fully foreign-issued stablecoins when overseas supervision is judged comparable to Singapore’s regime.
- New issuer safeguards in the consultation include a ban on paying interest on MAS-regulated stablecoins, mandatory stress testing, and formal recovery and orderly wind-down plans to protect users and the financial system.
- MAS says the changes respond to real-world pilots such as the BLOOM programme and Visa/Nium settlement tests and industry feedback will shape the final law, a process that could shift where institutional settlement liquidity flows if firms seek the MAS regulatory label.