What MAS is doing
MAS has opened a consultation on amendments to the Payment Services Act to implement the Single-Currency Stablecoin framework finalized in policy form in 2023.
The consultation moves the framework toward a formal licensing and supervision structure.
Protected regulatory label
The specialized framework targets qualifying Singapore-issued single-currency stablecoins pegged to SGD or G10 currencies.
Only qualifying regulated issuers would be permitted to use the protected designation “MAS-regulated stablecoin.”
100% reserve backing and redemption
The framework requires reserve assets worth at least 100% of outstanding stablecoins, with reserve segregation and liquidity safeguards.
It also requires redemption at par. The framework provides up to five business days for direct redemption requests.
Capital, disclosure and yield
Issuers face capital and disclosure requirements covering reserve composition, redemption rights, fees, governance and material risks.
MAS is also proposing restrictions on issuer-paid interest or other benefits linked to a holder’s regulated stablecoin balance, drawing a clearer line between payment stablecoins and yield-bearing/deposit-like products.
Foreign issuers and wind-down
The consultation also addresses foreign-issued stablecoin recognition, multi-jurisdiction issuance, stress testing, recovery planning and orderly wind-down arrangements.
Evidence Status
Confirmed: MAS consultation, Payment Services Act amendments, specialized SCS framework, protected regulatory label and October 16 consultation deadline.
Framework requirements: 100% reserves, par redemption, five-business-day direct redemption, capital/disclosure safeguards and proposed yield restrictions.
Risk Assessment
High regulatory significance, not a current issuer-failure event.
What to Watch Next
Final legislation; foreign-stablecoin recognition; issuer applications; exchange treatment; yield-product redesign; recovery/wind-down requirements.
FAQ
Are the rules already in force?
No. MAS is consulting on legislation.
What reserve level is required?
At least 100% of outstanding stablecoins.
How fast must direct redemption occur?
The framework provides up to five business days.
Can issuers pay yield?
MAS is proposing restrictions on holder-linked interest or benefits.