Singapore Proposes Full-Reserve Stablecoin Rules, Yield Ban

The Monetary Authority of Singapore finalized its policy framework in 2023 for single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency. Stablecoins are increasingly used as settlement assets in cross-border payments and tokenized finance, making reserve quality, par redemption and issuer accountability central to financial stability. Putting the regime into the Payment Services Act 2019 would turn policy into enforceable licensing rules and reserve the “MAS-regulated stablecoin” label for compliant issuers.

On Sept. 1, 2026, MAS released consultation P015-2026, with comments due by 11:59 p.m. Singapore time on Oct. 16. The proposed rules require issuers to maintain reserve assets worth at least 100% of outstanding tokens at all times, segregate those assets from corporate funds and refrain from paying interest or yield to holders. MAS is also considering eligibility for stablecoins jointly issued across jurisdictions and limited recognition of foreign-issued tokens overseen under comparable regimes. No implementation date has been set.