The MAS stablecoin framework is Singapore’s regulatory framework for eligible single-currency stablecoins, with requirements covering reserve assets, capital, redemption and disclosure.
The Monetary Authority of Singapore (MAS) finalized its policy position in August 2023 and, as of September 2026, is consulting on legislation to implement and expand the framework.
For stablecoin issuers, financial institutions, payment businesses and users, the framework matters because an MAS-regulated stablecoin is intended to meet specific standards for value stability rather than simply being any digital payment token designed to track a fiat currency.
Key Takeaways
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The Monetary Authority of Singapore finalized the SCS framework on August 15, 2023, initially covering single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency.
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Reserve assets must remain at least equal to 100% of the par value of qualifying stablecoins in circulation and be held in segregated accounts.
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The framework requires redemption at par, with the finalized policy specifying redemption within five business days after a valid redemption request.
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Draft legislation published in September 2026 proposes a dedicated stablecoin issuance licence, restrictions on paying interest, quarterly stress testing and stronger customer-fund safeguards.
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MAS is also proposing case-by-case pathways for multi-jurisdictional issuance and recognition of qualifying foreign-issued stablecoins; these changes are proposals, not yet final law.
MAS Stablecoin Framework and the Monetary Authority of Singapore
The Monetary Authority of Singapore is Singapore’s central bank and integrated financial regulator. Stablecoins sit within a broader digital-asset regime in which digital payment tokens and payment services can fall under the Payment Services Act 2019.
The framework focuses on single currency stablecoins (SCS) rather than every crypto asset marketed as stable. Singapore’s broader treatment of digital payment tokens and MAS crypto regulation therefore remains relevant to non-MAS-regulated stablecoins and DPT service providers.
The MAS final stablecoin policy identifies value stability, capital, redemption and disclosure as core safeguards. Stablecoin regulation across jurisdictions can differ substantially in areas such as permitted reserve composition, licensing and redemption rules, as reflected in stablecoin regulatory frameworks in Singapore and other markets.
Key Requirements for an MAS Regulated Stablecoin
The framework’s key requirements are designed to make an eligible fungible stablecoin reliably redeemable rather than relying only on market trading to maintain its peg.
| Requirement |
MAS approach |
| Reserve backing |
Reserve assets at least 100% of SCS in circulation |
| Reserve composition |
Low-risk, highly liquid assets in the pegged currency |
| Segregation |
Reserves held separately from issuer operating assets |
| Redemption |
At par within five business days |
| Capital |
At least S$1 million or 50% of annual operating expenses, whichever is higher |
| Transparency |
Monthly reserve attestation and appropriate disclosures |
| Audit |
Annual independent reserve audit |
Permitted reserve assets under the finalized approach include cash, cash equivalents and specified short-duration debt securities. The reserve portfolio must be valued daily, while segregated accounts help prevent the issuer from treating backing assets as ordinary business funds.
That matters because reserve quality and liquidity affect whether redemption requests can be met during market stress or elevated contagion risk.
Consultation Paper and the New Regulatory Framework
MAS published a new consultation paper on September 1, 2026, proposing amendments to the Payment Services Act 2019. The consultation remains open until October 16, 2026, so several provisions discussed below have not yet been enacted.
Under the proposed regulatory approach, a dedicated stablecoin issuance licence would be created. Only qualifying licence holders could represent themselves or their tokens as MAS-regulated stablecoins. Other stablecoins could continue to be treated as digital payment tokens, subject to the applicable DPT framework.
The proposals would also prohibit issuers from paying interest or returns merely for holding an MAS-regulated stablecoin. MAS is considering stronger safeguards for customer money received before stablecoin issuance or held while redemption proceeds are pending. Quarterly stress testing, recovery planning and orderly wind-down requirements are also proposed.
Proposed Regulatory Approach for Foreign Stablecoin Issuers
MAS is proposing limited recognition of foreign-issued stablecoins and certain multi-jurisdictional issuance structures rather than requiring every qualifying stablecoin to be issued solely in Singapore.
For the same fungible stablecoin issued across several jurisdictions, proposed safeguards include aggregate reserves equal to at least 100% of global circulation, appropriate reserve allocation and foreign regulatory regimes that MAS considers substantively equivalent. Applications would be assessed case by case.
In practice, this could enable cross-border business models while preserving consistent reserve and redemption standards. It does not mean every foreign issuer automatically becomes MAS regulated.
MAS Regulated Stablecoins vs Non-MAS-Regulated Stablecoins
An MAS-regulated designation is intended to indicate compliance with the specific SCS value-stability framework, while non-MAS-regulated stablecoins may remain subject to other rules applicable to digital payment tokens.
A practical example is USDG, a U.S. dollar stablecoin issued by Paxos Digital Singapore. Its role illustrates how regulated stablecoins may be used as digital settlement assets. Users outside restricted jurisdictions who encounter assets such as USDG can also check the relevant market information on Gate, while separately verifying the issuer, reserve arrangements and applicable regulatory status.
FAQ
What stablecoins does the MAS stablecoin framework cover?
The finalized 2023 framework focuses on single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency. Proposed 2026 changes could accommodate certain foreign and multi-jurisdictional issuance structures.
How much reserve backing must an MAS-regulated stablecoin have?
Reserve assets must be worth at least 100% of the par value of stablecoins in circulation at all times.
How quickly must a stablecoin issuer process redemption?
The finalized MAS policy requires eligible stablecoins to be redeemable at par within five business days after a legitimate redemption request.
Can MAS-regulated stablecoins pay interest?
MAS’s September 2026 consultation proposes prohibiting issuers from paying interest, returns or other benefits simply for holding an MAS-regulated stablecoin. The legislative amendments are still under consultation as of September 10, 2026.
Are foreign-issued stablecoins automatically recognized by MAS?
No. MAS proposes recognising only a limited number of foreign-issued stablecoins on a case-by-case basis where the foreign regulatory framework is substantively equivalent and supervisory cooperation requirements are satisfied.
Disclaimer: This content is for general informational purposes and does not constitute legal advice. Stablecoin requirements may change and differ by jurisdiction.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
