From Policy Paper to Proposed Law
Singapore has moved its stablecoin regime from principle to legislative text. On 1 September 2026, the Monetary Authority of Singapore (MAS) published a consultation paper setting out draft amendments to the Payment Services Act 2019 (PS Act) to give legal effect to its Single-Currency Stablecoin (MAS-SCS) framework. The consultation closes on 16 October 2026, and the MAS will consult separately on subsidiary legislation at a later stage. For cross-border payment providers, remittance firms and corporate treasuries, the draft is the clearest signal yet that Singapore intends to turn “MAS-regulated stablecoin” into an enforceable legal category, not a marketing label.
Reserve, Redemption, and the Yield Ban
The core obligations are designed to separate payment tokens from investment products. Issuers seeking the MAS-regulated label must hold reserve assets equal to at least 100% of the par value of all stablecoins in circulation, with segregated accounts, monthly independent attestations and annual audits. Holders must be able to redeem at par within five business days. Issuers are also barred from paying interest or any benefit tied to holding the stablecoin — a rule that aligns Singapore with the payment-focused logic of the US GENIUS Act and the EU’s MiCA regime. Non-bank issuers with more than S$5 million in circulation must obtain a Major Payment Institution (MPI) licence, while a new Stablecoin Issuance Licence sits alongside existing licence classes under the PS Act. Falsely holding a token out as MAS-regulated carries fines of up to S$250,000, with a further S$25,000 per day for continuing offences.
Cross-Border Recognition and Joint Issuance
The most consequential proposals for international transactions concern the treatment of foreign stablecoins. Under the 2023 framework, MAS took a cautious line. The September 2026 consultation proposes allowing stablecoins jointly issued by a Singapore entity and a foreign issuer to qualify for MAS-SCS status, provided the associated risks are adequately mitigated. It also opens a recognition pathway for a limited number of foreign-issued stablecoins regulated under comparable overseas frameworks, particularly for cross-border wholesale use cases. The MAS has signalled a selective, risk-based approach, anticipating that only a small number of stablecoins will be authorised or recognised, assessed on financial soundness, business viability and operational track record.
Why the Regulatory Perimeter Matters for Payment Corridors
For payment firms, the practical effect is a two-tier market. MAS-regulated stablecoins sit inside a perimeter of reserve audits, redemption rights and AML/CFT obligations. Stablecoins outside the framework remain Digital Payment Tokens (DPTs) and stay subject to existing consumer-protection rules, but they do not carry the same statutory assurance. In cross-border corridors, that distinction will shape which tokens banks and licensed remittance providers are willing to accept as settlement assets. The consultation also floats stress-testing and recovery-and-wind-down planning requirements, alongside safeguards for customer funds received before stablecoins are issued — measures that speak directly to the operational risks of moving value across borders.
The Road Ahead
The draft legislation is not yet in force, and key thresholds will follow in subsidiary legislation. But the direction is unambiguous: Singapore is building a regulated stablecoin settlement layer that can connect to foreign jurisdictions without lowering its supervisory bar. For businesses moving money into, out of, or through Singapore, the question is no longer whether stablecoins will be regulated, but which tokens will carry the MAS label — and which corridors will recognise it first.
