4th September 2026
By Shubhii Verma
Singapore’s Monetary Authority (MAS) has proposed tighter new stablecoin rules, introducing stricter reserve, redemption and user-protection requirements under a Single-Currency Stablecoin (MAS-SCS) framework.
On September 1, 2026, Singapore’s Monetary Authority (MAS) published a consultation proposing amendments to the Payment Services Act 2019. The framework would allow licensed issuers to designate qualifying tokens as MAS-regulated stablecoins if they meet the requirements.
Under the framework, stablecoins must be pegged to the Singapore dollar or a G10 currency, such as the U.S. dollar or euro. Issuers would also need to maintain reserves equal to 100% of stablecoins in circulation. These reserves must be held in liquid assets.
Another requirement concerns redemption. Holders must be able to redeem their stablecoins for the equivalent amount of fiat currency within five business days. The measure aims to strengthen confidence and user access to underlying value.
Stablecoins that fail to meet MAS-SCS requirements would not receive the regulated stablecoin designation. Instead, they would remain subject to Singapore’s Digital Payment Token (DPT) framework.
MAS Proposes Ban on Stablecoin Interest
A restriction is a ban on issuers paying interest or other yield-related benefits to holders of MAS-regulated stablecoins.
MAS wants regulated stablecoins to function primarily as payment and transaction instruments rather than savings or investment products. This would maintain a clearer distinction between stablecoins and traditional financial products.
The rule could limit some yield-focused applications in decentralized finance, where stablecoins are often used to generate returns.
Foreign Stablecoins Could Gain Cross-Border Role
The proposed framework also addresses international stablecoin activity. MAS plans to allow certain jointly issued stablecoins involving Singapore and foreign entities to qualify, provided associated risks are managed.
For wholesale cross-border transactions, MAS also proposes recognizing a limited number of foreign-issued stablecoins regulated under comparable overseas rules.
This could strengthen stablecoins in cross-border payments, tokenized markets and institutional transactions.
Public Consultation Closes October 16
MAS is seeking feedback from crypto companies, exchanges, financial institutions and market participants until October 16, 2026.
After consultation, MAS will review industry responses before finalizing the proposed legislative amendments. The changes would then need to pass through Singapore’s legislative process before taking effect.
If implemented, the framework could provide greater clarity for stablecoin issuers and users while imposing stricter standards on reserves, redemption and design. It could support institutional adoption while reshaping how stablecoins are used across Singapore’s crypto and DeFi ecosystem.
