Singapore MAS Proposes 100% Reserve Requirements for Stablecoin Issuers

Singapore's Monetary Authority (MAS) has proposed new regulations for stablecoin issuers, requiring them to maintain reserves equal to at least 100% of outstanding tokens and prohibiting the payment of interest or yields to holders. The proposals aim to formalize Singapore's position as a global crypto-asset hub and provide clear regulatory guardrails for stablecoins.

The proposed legislative amendments would convert the current informal oversight environment into a formal licensing regime, with MAS-regulated designation becoming statutory law. This mirrors the architecture of the US GENIUS Act, which requires full reserve backing and prohibits interest payments.

Tether's USDT held $189.5 billion in outstanding supply as of May 2026, while Circle's USDC stood at $78.8 billion. Neither issuer is currently eligible for the MAS-regulated designation, but the new proposal would allow jointly issued tokens and a narrow class of foreign-issued stablecoins from jurisdictions with comparable regulatory frameworks.

The yield prohibition is central to the proposals, as it would treat stablecoins with interest components as investment products rather than payment instruments. This reflects lessons drawn from the 2022 Terra-Luna collapse and the subsequent rewriting of supervisory expectations globally.