The Monetary Authority of Singapore will pilot tokenized notes next year, and legislation for stablecoins is also on the way.

[Block Rhythm] On November 13, the highest official of the Monetary Authority of Singapore ( MAS ) revealed a major announcement at the FinTech Festival: they plan to seriously pursue tokenization.

Director Chia Der Jiun spoke quite frankly – “Tokenization has indeed gained momentum, but have those tokens backed by assets really broken through the atmosphere? To be honest, they are still a bit short of that.” It seems that the regulatory authorities are well aware of the current situation.

The next steps are quite clear: next year, there will be a pilot issuance of tokenized MAS bills, while also preparing specific legislation for stablecoins. The core ideas are twofold – the reserve assets must be solid, and the redemption mechanism must be reliable. After all, when it comes to money, one must not be careless.

Chia also mentioned a “Blue Initiative” project, which sounds quite mysterious from its name, but it actually aims to explore using tokenization of bank liabilities and regulated stablecoins for settlement. In simple terms, it is to find a way for traditional finance and new methods to connect.

Singapore's move can be seen as a further push of tokenization from concept to practice.