Singapore Proposes Stablecoin License With 100% Reserves and No Holder

Singapore’s central bank and financial regulator has proposed a dedicated licensing framework for stablecoin issuers, including a requirement for tokens to maintain at least 100% reserve backing and restrictions on paying interest to holders.

According to information published by @WuBlockchain, the Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act that would establish a specific stablecoin issuance license. Only issuers operating under the proposed framework would be permitted to describe their tokens as “MAS-regulated stablecoins.”

MAS Sets Out Reserve and Redemption Requirements

Under the proposed framework, stablecoin issuers would be required to maintain reserves equivalent to at least 100% of the value of their outstanding tokens. The requirement is intended to ensure that stablecoins covered by the regime have sufficient backing to meet redemption obligations.

Issuers would also be required to meet specified redemption deadlines, placing obligations on providers to ensure holders can convert their stablecoins back into the relevant underlying assets within the required timeframe.

The proposed rules would apply alongside other licensing and regulatory requirements under

MAS is Singapore’s Payment Services Act. By creating a dedicated category for regulated stablecoins, seeking to establish clearer standards for issuers operating within the country's financial system.

Stablecoin Holders Would Not Receive Interest

Another significant element of the proposal is a restriction on stablecoin issuers paying interest or providing other benefits linked to token holdings.

The measure would distinguish regulated stablecoins from products designed to generate returns for holders. Issuers would therefore need to structure their offerings around payment and settlement functions rather than direct financial incentives tied to holding the tokens.

For the broader digital-asset industry, Singapore’s approach could reinforce a regulatory model centered on reserve quality, redemption reliability and limits on yield-generating features. The framework may also provide clearer parameters for financial institutions and businesses considering stablecoin-based payments.

The next step will be consideration of the proposed amendments and the development of the final licensing requirements, including the specific standards issuers will need to satisfy before using the “MAS-regulated stablecoins” designation.

Singapore proposes a stablecoin license requiring 100% reserves, timely redemption and no interest or benefits for holders of regulated tokens.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.