Singapore Weighs Recognition of Foreign-Issued Stablecoins

The Monetary Authority of Singapore (MAS) is re-examining its stance on foreign-issued stablecoins, considering proposals that could allow some jointly issued tokens to be recognized under its regulatory framework.

Under current regulations, MAS has restricted the use of stablecoins issued across multiple jurisdictions. However, the regulator now proposes a new route for stablecoins jointly issued by a Singapore issuer and a foreign issuer to qualify as 'MAS-regulated stablecoins,' provided that associated risks are sufficiently mitigated.

MAS is also considering recognizing a limited number of foreign-issued stablecoins regulated under comparable overseas frameworks, citing their potential use in cross-border wholesale transactions. The proposals revisit MAS's 2023 position that qualifying stablecoins must be issued solely in Singapore.

The proposed requirements for issuers licensed under the framework cover reserve-backed value stability, capital, redemption at par, and issuer disclosures. Only issuers licensed under the framework would be permitted to market themselves as 'MAS-regulated stablecoin issuers' and label their tokens 'MAS-regulated stablecoins.'