What Issuers Need to Know

• MAS proposed changes to the Payment Services Act to bring its stablecoin framework into law. 
• The proposal is open for public feedback until October 16, allowing stakeholder input. 
• Licensed issuers will be prohibited from offering interest to stablecoin holders. 

Singapore’s central bank has laid out detailed new rules for stablecoin issuers, and companies in the space now have to decide whether the official seal of approval is worth the extra cost and paperwork.

What Singapore Just Proposed

On September 1, the Monetary Authority of Singapore published a consultation paper proposing changes to the Payment Services Act to formally bring its single-currency stablecoin framework, first announced back in 2023, into law. The public comment period stays open until October 16.

New Rules for Issuers

Companies that want the official “MAS-regulated” label will need to follow strict requirements, including:

• Holding reserves worth 100% of every stablecoin in circulation, kept in cash, cash equivalents, or short-term low-risk debt
• Keeping those reserves in separate, custodian-held accounts
• Returning money to holders within five business days if they ask to redeem
• Holding minimum capital of at least SGD 1 million, or 50% of annual operating expenses, whichever is higher
• Running regular stress tests and having a plan ready in case the business needs to wind down

One new rule is that issuers won’t be allowed to pay interest to stablecoin holders. That draws a clear line between a stablecoin, which is meant for payments, and a bank deposit, which pays yield. Similar restrictions have already shown up in EU and US stablecoin rules.

A Bigger Change: Room for Foreign Partners

Back in 2023, Singapore planned to keep stablecoin issuance limited strictly to companies based in the country. That’s changed. Under the new proposal, companies could issue a stablecoin jointly with a foreign partner, splitting where reserves are held, as long as they can show they’ve managed the added risk. 

MAS is also creating a system to formally recognize foreign stablecoins that are already well-regulated elsewhere, rather than treating all foreign coins the same.

Is It Worth Getting Licensed?

For issuers, the calculation isn’t simple. Getting the MAS label brings real credibility with banks, institutions, and cautious users. But it also means giving up the ability to pay interest, a feature some competitors elsewhere still offer, plus taking on the cost of audits, stress testing, and holding extra capital.

Singapore has also been clear that it won’t hand out licenses to just anyone. Officials plan to approve only a limited number of issuers, based on a full review of each company’s financial health and track record.

What Comes Next

Feedback on the proposal is due October 16. After that, Singapore will draft the final legislation. The move follows Hong Kong, which launched its own stablecoin licensing regime in August 2025 and issued its first two licenses this April, adding pressure on Singapore to finalize its own rules.

Related: Why Banks Are Building Stablecoins and New Payment Rails