Singapore Seeks Feedback on Overseas Stablecoin Recognition

Singapore's central bank is seeking feedback on a proposal to recognize certain overseas stablecoins for use in cross-border wholesale transactions. The Monetary Authority of Singapore (MAS) has opened a public consultation on the framework, which would allow stablecoins jointly issued by Singaporean and overseas entities to be recognized as MAS-regulated if risks are sufficiently mitigated.

The authority is also considering recognizing overseas stablecoins that are subject to equivalent regulation in their home jurisdictions. To be eligible, issuers must maintain 100% asset backing, meet minimum capital thresholds, provide immediate one-to-one redemption, and conduct regular stress tests. Interest payments on stablecoins would be prohibited under the framework.

The proposal is part of Singapore's efforts to position itself as a global hub for digital asset innovation while maintaining strong regulatory standards. By integrating foreign stablecoins that meet equivalent standards, MAS aims to reduce friction in cross-border payments and provide clarity for issuers.