Stablecoin Framework Nearing Finalisation in Singapore, Boosting Digital Payments - Crypto Economy

Stablecoins are gradually becoming what many early crypto enthusiasts expected assets like Bitcoin to evolve into. The growing relevance of these assets in digital payment systems has pushed regulations to the forefront of global policies. President Trump signed the GENIUS Act of 2025 into law in July, creating the first framework for these assets in the United States. MiCA also provided a unified EU-wide framework that recently became effective across the euro area. Over the past months, major economies around the world have released or accelerated their own stablecoin policies. Singapore is now moving closer to finalising its framework, solidifying its position as a regulatory pioneer in Asia alongside markets such as Hong Kong and Japan.

Overview of MAS’s Approach to Stablecoin Regulation

Singapore’s stablecoin journey didn’t happen overnight. The Monetary Authority of Singapore (MAS) has been refining its approach to the stablecoin market since its initial public consultation in 2022. The goal at the time was to gather feedback on a proposed regulatory approach for all activities surrounding these digital assets, while issuing and managing the new forms of digital money responsibly

The first major milestone arrived on August 15, 2023. MAS announced the finalised framework for single-currency stablecoins (SCS) pegged to the Singapore Dollar or to G10 currencies. Currently, the country’s central bank is preparing to take a significant step in its digital asset roadmap, outlining plans to issue tokenised versions of MAS bills backed by settlement through a wholesale central bank digital currency (CBDC).

Recent Developments on The Regulatory Framework


Digital currencies and tokenised financial systems have been topical for some time now. Over 100 countries are exploring central bank digital currencies (CBDCs), with some at advanced stages of research, piloting, or launch. China has the most prominent large-scale pilot program for its digital yuan, which began internal testing in 2020. Recent developments show Singapore’s financial regulators preparing to introduce their own new rules for stablecoins and also expand their CBDC trials as part of their effort to build a digital asset payment system

Speaking at the Singapore Fintech Festival, MAS managing director Chia Der Jiun mentioned that tokenisation is no longer an experimental concept and is already becoming a mainstream financial application. He further noted that MAS has been working on the details of its stablecoin regulatory system and plans to prepare draft legislation.

The country’s three major banks, DBS, OCBC, and UOB, have successfully executed interbank overnight lending transactions using the first five trial issuance of a Singapore dollar wholesale CBDC. These digital assets are being introduced to promote faster, easier, and more accessible transactions. They would also play a significant role in international transactions, as MAS announced that it would collaborate with the Bank of England and the Bank of Thailand to conduct experiments that could help facilitate this

What This Means for Issuers and Digital Asset Services


One of the biggest challenges digital assets have faced since their inception is regulatory uncertainty… The persistence of the lack of a regulatory framework for these assets has been a significant disadvantage, as it undermines users’ trust and stunts adoption. Stablecoins are already regarded as more reliable assets because they’re backed by real-world assets like the U.S dollar. The regulatory “label” enhances their credibility and supports more stablecoin adoption

The framework also provides detailed guidance on key operational requirements, including acceptable reserve assets, redemption obligations, disclosure standards, and ongoing compliance measures. Issuers now know exactly what is required to operate within Singapore’s markets, reducing uncertainty and risk. This clarity is very likely to encourage not only local players but also international stablecoin issuers to consider Singapore as a stable base for regulated operations. From this perspective, platforms like TradingView Singapore might begin to see increased attention on stablecoin-related investments and transactions

CBDCs are also a gateway to many digital asset innovations underway. By providing a digital representation of central bank money, these assets offer a secure, fully regulated foundation for a fully digitised, tokenised transaction system. At the same time, they are bridging the gap between traditional finance and emerging digital assets. Unlike cryptocurrencies, which can be volatile and largely unregulated, CBDCs are backed by the full faith of the central bank, ensuring trust and legal certainty for all investors and users

Singapore as a Leader in Tokenised Finance

Singapore is well-positioned as one of the biggest tech and innovation markets in Asia, and this recent development further seals its position as a leader in forward-thinking initiatives. MAS has clearly stated the country’s long-term commitment towards building a secure digital asset system, and there is so much to look forward to in the coming years. This initiative would be a major breakthrough for many, from issuers to investment platforms, traders, and the everyday person. This strategic breakthrough also makes the country an attractive base for international issuers, fintechs, and institutions exploring tokenised assets.

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