The Monetary Authority of Singapore (MAS) has officially finalized its regulatory framework for stablecoin-related activities, marking a significant milestone in the nation’s journey toward becoming a globally trusted hub for digital finance. After launching a public consultation in October 2022, MAS announced on August 15, 2023, that it has incorporated public feedback and released the definitive version of its stablecoin oversight structure.
This comprehensive framework focuses specifically on single-currency stablecoins (SCS) pegged to the Singapore Dollar (SGD) or any of the G10 currencies—widely recognized as the most liquid and stable fiat currencies in global markets. These include currencies from the United States, Canada, the UK, Eurozone countries, Japan, Australia, Sweden, Switzerland, Norway, and Denmark.
By establishing clear standards, MAS aims to foster innovation while ensuring financial stability, consumer protection, and transparency in the rapidly evolving digital asset ecosystem.
👉 Discover how global regulators are shaping the future of digital finance.
Core Requirements for SCS Issuers
To ensure trust and reliability, MAS has set forth four stringent conditions that all SCS issuers must meet. These requirements are designed to uphold value stability, protect users, and maintain systemic integrity.
1. Value Stability Through Robust Reserves
The cornerstone of any stablecoin is its ability to maintain a stable value. Under the new framework, issuers must back every issued SCS token with high-quality reserve assets equal to at least 100% of the circulating supply.
These reserves must consist primarily of:
- Cash
- Cash equivalents
- Short-term government securities denominated in the same currency as the stablecoin
Additionally, reserve assets must be:
- Properly valued using conservative accounting principles
- Held in custody by licensed or regulated entities
- Subject to regular independent audits
This ensures that even during periods of market stress, the stablecoin can maintain its peg and avoid destabilizing runs.
2. Capital and Liquidity Requirements
To mitigate insolvency risks, SCS issuers are required to maintain sufficient capital and liquid assets. This capital buffer acts as a safety net, allowing the issuer to continue operations during downturns or unexpected redemptions.
Key expectations include:
- Minimum net assets based on operational scale
- Liquidity coverage ratio ensuring short-term obligations can be met
- Business continuity plans for orderly wind-down if necessary
These measures enhance resilience and reduce the likelihood of systemic spillover effects in case of issuer failure.
3. Redemption Rights Within Five Business Days
User protection is central to MAS’s approach. All SCS holders must have the right to redeem their tokens at face value—meaning 1 SCS equals 1 unit of the underlying fiat currency.
Issuers must process redemption requests within five business days, ensuring timely access to funds. This requirement strengthens confidence by guaranteeing that stablecoins remain functionally equivalent to traditional money.
Furthermore, redemption terms must be clearly communicated upfront, with no hidden fees or unreasonable conditions imposed on users.
4. Transparent Disclosure Practices
Transparency builds trust. MAS mandates that SCS issuers provide comprehensive disclosures to the public, including:
- Quarterly audited reports on reserve composition and valuation
- Clear explanation of holders’ rights and claims against reserves
- Detailed description of mechanisms used to maintain price stability
These disclosures must be published on the issuer’s website in an easily accessible format, enabling investors and regulators alike to monitor compliance continuously.
The “MAS-Regulated” Trust Label
SCS issuers that fully comply with all four requirements may apply for an official “MAS-regulated” label. This designation serves as a mark of credibility and quality assurance for users navigating the complex world of digital assets.
Once granted, this label allows consumers to instantly identify stablecoins that meet MAS’s rigorous standards—differentiating them from unregulated or lower-quality alternatives.
However, misuse of this label is strictly prohibited. Any entity falsely claiming to be “MAS-regulated” will be added to the MAS Investor Alert List and may face severe penalties, including:
- Significant financial fines
- Criminal prosecution
- Imprisonment for individuals involved
This enforcement mechanism reinforces accountability and deters bad actors from exploiting regulatory trust.
👉 See how compliant digital asset platforms are transforming financial services today.
Why This Matters: Building Global Confidence in Digital Currencies
Singapore’s finalized stablecoin framework positions the country as a leader in forward-thinking fintech regulation. Unlike jurisdictions still grappling with ambiguity, MAS offers a clear, rules-based pathway for responsible innovation.
For businesses, this means:
- Predictable compliance standards
- Lower regulatory uncertainty
- Enhanced investor confidence
For users, it delivers:
- Greater protection of funds
- Reliable redemption processes
- Access to audited, transparent products
As central banks and regulators worldwide explore digital currencies and tokenized assets, Singapore’s model could serve as a benchmark for others to follow.
Frequently Asked Questions (FAQ)
Q: What is a single-currency stablecoin (SCS)?
A: An SCS is a type of cryptocurrency designed to maintain a stable value by being fully backed by reserves of a single fiat currency—such as SGD, USD, or EUR—and redeemable at a 1:1 ratio.
Q: Does this framework apply to all stablecoins?
A: No. It applies only to SCS pegged to SGD or G10 currencies. Multi-currency stablecoins, algorithmic stablecoins, or those pegged to commodities are not covered under this specific framework.
Q: Can foreign companies issue MAS-compliant stablecoins?
A: Yes, as long as they meet all regulatory requirements and submit to MAS oversight. The framework is jurisdiction-neutral but demands full compliance regardless of issuer location.
Q: How often are reserve audits required?
A: At minimum, quarterly audits by an independent, MAS-approved auditor are required. Results must be made publicly available within 30 days of completion.
Q: Is there a fee to apply for the “MAS-regulated” label?
A: While MAS has not disclosed exact fees, applicants should expect regulatory assessment costs tied to due diligence and ongoing supervision.
Q: What happens if an issuer fails to meet requirements after receiving the label?
A: MAS will revoke the label, require corrective actions, and may impose penalties. Continued non-compliance could lead to license suspension or criminal charges.
Looking Ahead: The Future of Tokenized Finance in Singapore
With this framework in place, Singapore strengthens its reputation as a secure and innovative financial center. As real-world assets become increasingly tokenized—from bonds to real estate—the need for trusted digital settlement layers grows more urgent.
MAS’s approach balances innovation with prudence, setting a high bar without stifling progress. Other nations watching this development may soon adopt similar models, accelerating global standardization.
For developers, institutions, and users alike, Singapore’s stablecoin rules offer clarity, security, and opportunity—all essential ingredients for sustainable growth in Web3 and decentralized finance.
👉 Explore next-generation financial tools built on secure and compliant infrastructure.