MAS Proposes Tough Rules for Singapore Stablecoin Issuers

Singapore's financial regulator, the Monetary Authority of Singapore (MAS), has proposed amendments to the Payment Services Act that would require stablecoin issuers to fully back tokens with reserves and bar them from paying yield.

The MAS wants issuers to maintain assets equal to at least 100% of all tokens in circulation at all times, in accounts separate from their own funds and custodied only with licensed financial institutions.

This move aims to give holders greater protection when redeeming a Singapore-regulated stablecoin by requiring issuers to maintain sufficient reserve assets and to safeguard funds pending redemption.

The MAS also proposes to bar stablecoin issuers from paying interest or other benefits tied to customers' stablecoin holdings, an approach that is aligned with international regulatory practices such as the U.S. GENIUS Act and the European Union's Markets in Crypto-Assets (MiCA) regulation.