Singapore Tightens Stablecoin Regulations While Pioneering Tokenized Bill Experiments

Singapore's financial regulators are making bold moves—clamping down on stablecoins while diving headfirst into tokenization experiments. The Monetary Authority of Singapore (MAS) just dropped a regulatory blueprint that'll make stablecoin issuers sweat: mandatory 1:1 reserves, monthly audits, and instant redemption requirements. No more algorithmic funny business.

Meanwhile, Project Guardian—MAS's blockchain sandbox—is cooking up tokenized government securities. Early tests show settlement times slashed from days to minutes. TradFi banks are scrambling to join the party before they get disrupted into obsolescence. Typical finance dinosaurs—always late to the innovation buffet.

This isn't just policy tweaking—it's Singapore's play to dominate the future of programmable money. The city-state's betting big that regulated crypto infrastructure will attract billions in institutional capital. And let's be honest—when Singapore moves, global finance usually follows.

Chia says MAS to publish tokenization guide

Chia Jiun mentioned that MAS is taking a step towards providing more regulatory clarity and will be publishing a “Guide on the Tokenization of Capital Market Products” later this week. The guide will use case studies to provide more clarity on the regulated treatment of tokenized capital market products, such as bills. It also provides guidance on the applicable disclosures and will be updated periodically as tokenization develops.

According to Chia, there are specificities in tokenization and blockchain networks that WOULD benefit from more regulatory and legal clarity. The MAS executive noted that many regulators have adopted a technology-neutral approach, and regulatory standards only apply based on their economic and legal substance.

However, MAS is also working with industry and international counterparts to address barriers and gaps to the adoption of asset-backed tokens. 

“We welcome more collaborations with market participants and regulators to further mature the tokenisation ecosystem and help bridge the adoption gap.” 

–Chia Jiun, Managing Director of MAS

Chia said a joint report published yesterday provides actionable steps for market participants and regulators to help scale adoption. The collaboration is between the Investment Association of the UK and the Investment Management Association of Singapore, with support from the UK Financial Conduct Authority and MAS.

MAS claims Singapore needs institutional-grade networks

MAS emphasized that stablecoins and tokenized bills need foundational blockchain attributes that are not readily available on public permissionless blockchains. The regulator noted that the ideal network should have clear governance structures, secure and reliable performance, regulatory compliance, predictable and transparent fees, settlement finality, and privacy optionality. 

Meanwhile, Chia said that FIs and innovators are developing solutions to make blockchain networks institutional-grade. Other network operators are also developing customizable private blockchains with the features identified above. Some are building permissioned and compliance layers on public blockchain networks.

However, for market participants to gain greater confidence in these networks, the MAS claims that there needs to be more clarity on whether these arrangements are compliant with regulatory standards. The participants would also like to see more industry standards developed around functionalities and operational performance.

Another notable contribution has been the GL1 Market Infrastructure Toolkit, developed under the support of the Global LAYER One initiative. FIs and network operators can utilize the toolkit to determine whether blockchains comply with internationally recognized regulatory standards, such as the PFMI, and market practices, including the DAS CP developed by FMI operators. The toolkit comprises 108 controls, and Chia believes that such verification processes and tools will help build confidence in using compliant blockchains.

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