Singapore proposes dedicated licence and 100% reserve rule for stablecoins
DeFi & Yields ·
MAS has opened a public consultation on amendments to the Payment Services Act that would create a standalone licensing regime for stablecoin issuers operating in the city-state.
The consultation paper, numbered P015-2026, was published on 1 September 2026 and remains open for comment until 16 October 2026. It sets out legislative changes meant to formalize a stablecoin framework first outlined by MAS in August 2023, updated to reflect market developments since then.
Under the proposal, issuers would need a dedicated issuance licence rather than operating under existing payment-service categories. Reserve assets backing the stablecoins would have to equal 100% of the value in circulation, and holders would be entitled to redeem tokens at par. The framework also calls for customer fund safeguards and tightened risk-management requirements for issuers.
A related report on the same proposal notes that MAS would also require quarterly stress tests for licensed issuers, according to wublockchain.xyz. The consultation additionally proposes barring issuers from paying interest to stablecoin holders, and it introduces heightened oversight for stablecoins deemed systemic as well as those issued by foreign entities.
The measures would extend Singapore's existing payment-services architecture, which already regulates seven categories of payment services requiring a licence unless exempted, into a more specific regime tailored to stablecoins rather than treating them under broader digital-payment-token or e-money provisions.
What remains open is how MAS will finalize the rules following the consultation period, including whether the 100% reserve and par-redemption requirements will be adjusted based on industry feedback, and how the framework will apply in practice to foreign-issued stablecoins already circulating in Singapore's market. The consultation window closing on 16 October 2026 will determine the next steps before any amendments take legislative effect.