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Singapore Moves Closer to Enacting Stablecoin Regulation with 100% Reserve and Interest Ban
On September 1 2026, the Monetary Authority of Singapore (MAS) released a consultation paper that could turn its draft stable‑coin rules into enforceable law. Titled P015‑2026, the proposal amends the Payment Services Act (PSA) and sets out the conditions a stable‑coin issuer must satisfy to gain MAS‑regulated status.
At the heart of the draft are two hard limits. First, every regulated stable‑coin must be backed by segregated reserves that equal at least 100 % of the tokens in circulation. Second, issuers are prohibited from offering interest on those tokens, a move that would bar yield‑generating stable‑coin products from falling under the same regulatory umbrella. The paper also requires issuers to perform regular stress tests and to keep recovery or orderly wind‑down plans ready in case of financial distress.
"MAS’ proposed legislative amendments will give effect to a stable‑coin framework that promotes responsible financial innovation," said Ho Hern Shin, MAS’s deputy managing director for financial supervision. "The framework will provide clear regulatory guardrails for stable‑coins that meet high standards of value stability and governance."
The draft opens a path for foreign‑issued stable‑coins to seek MAS recognition. Issuers outside Singapore can apply for regulated status if they are already covered by comparable rules in their home jurisdiction, allowing cross‑border products to operate under a single, trusted regulatory regime.
Singapore’s stable‑coin framework has been evolving since 2023, when the country first finalized rules for single‑currency stable‑coins (SCS). The new amendments build on that foundation and aim to address liquidity, systemic risk and consumer protection concerns that have emerged as the market matures.
Globally, stable‑coin regulation is gaining traction. The European Union’s Markets in Crypto‑Assets (MiCA) regulation, which took effect in December 2024, sets out a comprehensive framework for crypto‑assets, including stable‑coins. In the United States, the recently enacted GENIUS Act creates a federal structure for digital‑asset regulation.
MAS’s proposal comes amid growing interest in tokenized settlement rails. Visa has joined the MAS BLOOM initiative, a pilot that tests the integration of regulated stable‑coins with traditional payment networks. A PYMNTS report notes that Visa plans to experiment with settlement using dollar‑ and euro‑denominated stable‑coins, exploring how tokenized bank liabilities, regulated stable‑coins and established payment networks can coexist.
"For corporate treasurers, another stable‑coin pilot is not the interesting part. It is whether the networks carrying these new forms of money will actually talk to one another," the report observed. The ability to move value from a U.S. bank account to a supplier overseas on time and securely depends on more than token issuance; it requires conversion, foreign‑exchange, compliance, liquidity, settlement and connectivity.
The consultation period closes on October 16 2026. After reviewing public comments, MAS will decide whether to advance the amendments. If adopted, the changes would formalize stable‑coin regulation in Singapore, giving issuers a clear set of rules to follow.
At present, the framework remains a proposal. MAS has not yet finalized the legislation, and issuers must wait for the consultation outcome before applying for regulated status. Industry observers will watch closely to see how the new rules align with global standards and how they will influence the deployment of stable‑coins in tokenized financial markets.
In short, Singapore is pushing forward a stable‑coin regulatory framework that mandates 100 % reserve backing, bans interest payments, requires stress testing and recovery plans, and permits foreign issuers to seek recognition under comparable domestic rules. The proposal is part of a broader global effort to bring stable‑coins under clear, consumer‑protective regulation while supporting innovation in digital‑asset settlement.
At the heart of the draft are two hard limits. First, every regulated stable‑coin must be backed by segregated reserves that equal at least 100 % of the tokens in circulation. Second, issuers are prohibited from offering interest on those tokens, a move that would bar yield‑generating stable‑coin products from falling under the same regulatory umbrella. The paper also requires issuers to perform regular stress tests and to keep recovery or orderly wind‑down plans ready in case of financial distress.
"MAS’ proposed legislative amendments will give effect to a stable‑coin framework that promotes responsible financial innovation," said Ho Hern Shin, MAS’s deputy managing director for financial supervision. "The framework will provide clear regulatory guardrails for stable‑coins that meet high standards of value stability and governance."
The draft opens a path for foreign‑issued stable‑coins to seek MAS recognition. Issuers outside Singapore can apply for regulated status if they are already covered by comparable rules in their home jurisdiction, allowing cross‑border products to operate under a single, trusted regulatory regime.
Singapore’s stable‑coin framework has been evolving since 2023, when the country first finalized rules for single‑currency stable‑coins (SCS). The new amendments build on that foundation and aim to address liquidity, systemic risk and consumer protection concerns that have emerged as the market matures.
Globally, stable‑coin regulation is gaining traction. The European Union’s Markets in Crypto‑Assets (MiCA) regulation, which took effect in December 2024, sets out a comprehensive framework for crypto‑assets, including stable‑coins. In the United States, the recently enacted GENIUS Act creates a federal structure for digital‑asset regulation.
MAS’s proposal comes amid growing interest in tokenized settlement rails. Visa has joined the MAS BLOOM initiative, a pilot that tests the integration of regulated stable‑coins with traditional payment networks. A PYMNTS report notes that Visa plans to experiment with settlement using dollar‑ and euro‑denominated stable‑coins, exploring how tokenized bank liabilities, regulated stable‑coins and established payment networks can coexist.
"For corporate treasurers, another stable‑coin pilot is not the interesting part. It is whether the networks carrying these new forms of money will actually talk to one another," the report observed. The ability to move value from a U.S. bank account to a supplier overseas on time and securely depends on more than token issuance; it requires conversion, foreign‑exchange, compliance, liquidity, settlement and connectivity.
The consultation period closes on October 16 2026. After reviewing public comments, MAS will decide whether to advance the amendments. If adopted, the changes would formalize stable‑coin regulation in Singapore, giving issuers a clear set of rules to follow.
At present, the framework remains a proposal. MAS has not yet finalized the legislation, and issuers must wait for the consultation outcome before applying for regulated status. Industry observers will watch closely to see how the new rules align with global standards and how they will influence the deployment of stable‑coins in tokenized financial markets.
In short, Singapore is pushing forward a stable‑coin regulatory framework that mandates 100 % reserve backing, bans interest payments, requires stress testing and recovery plans, and permits foreign issuers to seek recognition under comparable domestic rules. The proposal is part of a broader global effort to bring stable‑coins under clear, consumer‑protective regulation while supporting innovation in digital‑asset settlement.
