MAS Reopens Debate on Jointly Issued Stablecoin Regulation

The Monetary Authority of Singapore (MAS) has proposed a new route for jointly issued stablecoins to qualify under its regulatory framework. The proposal would allow tokens issued by a Singaporean and a foreign entity to receive the 'MAS-regulated stablecoin' label if risks are adequately mitigated.

The MAS is evaluating the recognition of foreign stablecoins regulated under comparable frameworks for use in cross-border wholesale transactions. This move aims to revisit the stance adopted in 2023, when the regulator restricted the scheme to stablecoins issued exclusively in Singaporean territory and pegged to the Singapore dollar or a G10 currency.

The consultation covers legislative amendments to the Payment Services Act (PSA), which governs payment services and operators in the country. Under the central proposal, a stablecoin jointly issued by a local and a foreign issuer could qualify as a 'MAS-regulated stablecoin', provided that the associated risks are sufficiently mitigated.