Singapore’s New Stablecoin Rules: 100% Reserves, Yield Ban and 5 Key Changes

Singapore’s central bank has proposed writing its stablecoin policy into enforceable law, requiring issuers to back tokens with reserves equal to at least 100% of circulation and barring them from paying holders any interest or yield. The Monetary Authority of Singapore says the framework aligns with the U.S. GENIUS Act and the EU’s MiCA regulation, both of which impose similar yield bans. Public feedback on the proposal, numbered P015-2026, is open until Oct. 16, 2026.

100% Reserves, No Yield: The Core Rules

MAS’s proposal would require licensed issuers to hold reserve assets covering at least 100% of outstanding tokens at all times, in liquid, low-risk instruments segregated from the issuer’s own funds and held with approved custodians. Reserves would face independent monthly attestation, and issuers would need to support redemption at par within a five-business-day window. Capital requirements carry over from MAS’s 2023 policy: the higher of S$1 million or 50% of annual operating expenses.

The yield ban is explicit. MAS states in its consultation paper that stablecoins “should not be used by the public as investment products or for the generation of yield, akin to bank deposit.” Ho Hern Shin, MAS deputy managing director for financial supervision, said trusted, well-regulated stablecoins can function as a credible settlement asset in tokenized markets while limiting risk to users and the wider financial system. Only issuers meeting the full regime could use the “MAS-regulated stablecoin” label; tokens outside it would remain governed under Singapore’s existing Digital Payment Token rules.

Additional safeguards in the proposal include:

• Quarterly stress tests for licensed issuers to confirm reserve adequacy under adverse conditions.
• Trace, freeze, or burn capabilities for tokens tied to illicit activity, plus potential circulation restrictions or delisting for systemically important stablecoins that fall short of requirements.

Foreign Recognition Still Undecided

The consultation also opens the door to limited recognition of a small number of foreign stablecoins issued under comparable overseas frameworks. MAS has not yet determined how that recognition would work in practice, how responsibilities would divide for jointly issued tokens, or whether existing Singapore-based issuers would get a transitional period to comply. The framework applies to single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a Group of Ten currency.

MAS first consulted on stablecoin rules in October 2022 and finalized its policy response in August 2023; Tuesday’s filing is the step that would convert that policy into binding law under the Payment Services Act. No implementation date has been set, and MAS says it will consult separately on subsidiary legislation at a later stage.

The proposal arrives as regulated stablecoins are already being tested inside Singapore’s system. Ripple is using the central bank’s sandbox to test whether its RLUSD token can replace manual, paper-based processes that have slowed cross-border trade finance for decades. The trial runs under BLOOM, an MAS initiative aimed at extending settlement capabilities to tokenized bank liabilities and regulated stablecoins.

Conclusion

Singapore’s move puts a fourth major jurisdiction — alongside the U.S., EU, and earlier Hong Kong rules — behind the same basic stablecoin formula: full reserve backing, no yield, and redemption guarantees enforceable by law rather than guidance. The unresolved question is foreign recognition, which will determine whether tokens like RLUSD can operate across borders under mutual frameworks or need separate Singapore licensing. With six weeks left in the consultation window, the October 16 deadline will show how much pushback issuers mount over the yield ban before the rules move toward final legislative text.