Singapore Moves to Formalise Its Stablecoin Framework, What the MAS Consultation Means

MAS has opened consultation on the legislative amendments needed to bring its stablecoin regulatory framework into force, including a notable rethink on how cross border stablecoin issuance will be treated.

On 1 September 2026, the Monetary Authority of Singapore published a consultation paper on proposed amendments to the Payment Services Act 2019 to implement Singapore’s regulatory framework for stablecoins. The consultation represents the next step in giving legislative effect to the stablecoin framework previously announced by MAS. Feedback on the proposed amendments closes on 16 October 2026, with further details expected to be set out through subsidiary legislation and related regulatory requirements.

What Is Being Proposed

The proposed amendments establish a dedicated regulatory framework for qualifying single currency stablecoins issued in Singapore. The framework applies to stablecoins pegged to the Singapore dollar or a G10 currency and would allow qualifying stablecoins issued by regulated issuers to be identified as MAS regulated stablecoins.

The proposed framework includes requirements relating to the following areas.

• Reserve assets. Issuers would be required to maintain appropriate reserve backing for MAS regulated stablecoins, with more detailed requirements governing reserve assets to be prescribed under the regulatory framework.
• Capital and prudential requirements. Regulated issuers would be subject to financial and prudential requirements intended to support their ongoing operations.
• Redemption. Holders would have rights to redeem MAS regulated stablecoins at par, subject to the requirements prescribed by MAS.
• Safeguarding. MAS proposes requirements governing the safeguarding of monies associated with the issuance and redemption of MAS regulated stablecoins.
• Disclosure. Issuers would be required to provide prescribed information to stablecoin holders.
• Restrictions on returns. The proposed framework restricts issuers from providing returns or benefits attributable to the holding of MAS regulated stablecoins.

Only stablecoins meeting the applicable regulatory requirements would be able to carry the MAS regulated designation. Stablecoins outside the MAS regulated stablecoin framework may continue to fall within the wider regulatory framework for digital payment tokens where applicable.

MAS Is Reconsidering Cross Border Issuance

One of the more significant aspects of the consultation is MAS’s approach to stablecoins issued across multiple jurisdictions. When MAS finalised its stablecoin regulatory approach in 2023, it adopted a more restrictive position on multi jurisdictional issuance. The latest consultation revisits that approach.

MAS is now proposing to allow a stablecoin issued under a multi jurisdictional issuance arrangement, involving issuance by a Singapore entity together with a related or affiliated foreign issuer, potentially to qualify under the MAS regulatory framework, subject to specified conditions and safeguards. This reflects the increasingly cross border nature of stablecoin issuance and distribution.

A Possible Recognition Framework for Foreign Stablecoins

MAS is also proposing a separate framework under which certain stablecoins issued outside Singapore could be formally recognised. Under the proposed amendments, a qualifying foreign issuer could potentially be recognised by MAS as an MAS recognised stablecoin issuer, allowing the relevant stablecoin to be treated as an MAS recognised stablecoin.

This would be distinct from an MAS regulated stablecoin, which would arise under the Singapore licensing framework. The proposed recognition regime creates a potential pathway for appropriately regulated foreign issued stablecoins to obtain formal regulatory recognition in Singapore, rather than being treated in the same way as other digital payment tokens.

Why It Matters

The consultation provides greater clarity on how Singapore intends to distinguish regulated stablecoins from the wider digital payment token market. For businesses considering the use of stablecoins for payments, settlement, treasury management, or other commercial purposes, the regulatory status of the stablecoin, and the jurisdiction in which it is issued, may become increasingly important.

For businesses establishing structures involving digital assets, the consultation is also a reminder that regulatory treatment depends not simply on the entity being incorporated, but on the activities being carried out and the characteristics of the digital asset involved.

What Happens Next

The consultation closes on 16 October 2026. The proposals remain subject to consultation, and the final regulatory requirements may differ from those currently proposed. Further requirements are also expected to be set out through subsidiary legislation and other regulatory instruments as MAS moves towards implementation of the framework.

For businesses operating in Singapore’s digital asset ecosystem, the consultation provides the clearest indication yet of how MAS intends to distinguish locally regulated stablecoins, recognised foreign stablecoins, and the broader digital payment token market.

Source: Monetary Authority of Singapore consultation paper on proposed amendments to the Payment Services Act 2019, published 1 September 2026. This article is for general information only and does not constitute legal, regulatory, or other professional advice. The proposals discussed remain subject to consultation and may change before implementation.