Singapore Tightens Stablecoin Rules with 100% Reserves Requirement

Singapore has proposed new rules for stablecoins to ensure their stability and security. The Monetary Authority of Singapore (MAS) wants licensed issuers to peg tokens to the Singapore dollar or a G10 currency, hold 100% reserves in safe liquid assets, and allow fiat redemption within five business days.

The proposal bans issuers from paying interest on MAS-regulated stablecoins, which could help keep stablecoins focused on payments and transactions. The framework would provide clear regulatory guardrails for stablecoins that meet high standards of value stability and governance, according to Ho Hern Shin, MAS Deputy Managing Director.

The rules also cover international use, allowing stablecoins jointly issued by Singapore and foreign companies to qualify under the framework if related risks are properly managed. For wholesale cross-border use, MAS plans to recognize a limited number of foreign-issued stablecoins regulated under comparable overseas rules.