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Singapore’s financial regulator just published the rulebook it wants stablecoin issuers to follow, and the fine print is forcing some hard decisions across the industry.
The Monetary Authority of Singapore released consultation paper P015-2026 on September 1, proposing amendments to the Payment Services Act 2019 that would formalize the MAS Single-Currency Stablecoin (MAS-SCS) framework. The public feedback window closes October 16, after which subsidiary legislation will follow.
What the framework actually requires
To earn the label, issuers must maintain 100% reserve backing for their stablecoins at all times. They must also guarantee redemption at par value within five business days. The framework signals MAS isn’t looking to hand out approvals liberally. The regulator has explicitly stated it expects only a limited number of issuers and coins to receive authorization, based on a holistic assessment covering financial soundness and operational history.
New territory: cross-border recognition
The most consequential shift from the original 2023 policy framework is the opening toward multi-jurisdictional issuance. When MAS first articulated its stablecoin policy on August 15, 2023, issuance was effectively scoped to Singapore only. The new proposals reverse that stance.
Under the updated framework, joint Singapore-foreign stablecoin issuance would be permitted on a case-by-case basis, provided issuers demonstrate adequate risk mitigation strategies. MAS is also introducing limited recognition of foreign-issued stablecoins regulated under regimes it deems comparable.
The guardrails and their implications
MAS-regulated stablecoins cannot pay interest to holders. This is a deliberate design choice that draws a clear line between stablecoins (payment instruments) and deposit products (banking territory). It mirrors the approach taken by EU regulators under MiCA and aligns with the direction US lawmakers have been moving.
Quarterly stress testing and mandatory recovery and orderly wind-down plans are also required. For smaller issuers, the combination of capital requirements, stress testing infrastructure, wind-down planning, and the operational overhead of maintaining par-value redemption within five business days creates a significant barrier to entry.
Singapore’s positioning in the global race
The timing of this consultation paper is not accidental. The EU’s MiCA framework is already operational. The US is actively debating stablecoin legislation, with multiple bills circulating through Congress.
By creating a formal licensing regime with clear requirements, Singapore is offering issuers regulatory certainty. The trade-off is significant compliance burden and limited approvals, but for the issuers who make the cut, the “MAS-regulated” label could function as a competitive moat in institutional markets where counterparties demand regulatory credibility.
The cross-border recognition provisions also position Singapore as a potential bridge between Asian and Western stablecoin markets. If MAS deems the EU’s MiCA regime comparable, a MiCA-licensed stablecoin could gain limited recognition in Singapore without a full duplicate licensing process.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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