Singapore Advances Digital Asset Framework with Stablecoin Rules, CBDC Trials

Singapore's central bank is moving forward with comprehensive digital asset initiatives spanning stablecoin regulation, wholesale CBDC pilots, and tokenized capital markets guidance, Monetary Authority of Singapore Managing Director Chia Der Jiun announced at the Singapore FinTech Festival on Thursday.

MAS has finalized features for its stablecoin regulatory regime and will prepare draft legislation, Chia said Wednesday. The framework prioritizes "sound reserve backing and redemption reliability" to ensure value stability, addressing concerns about unregulated stablecoins that have experienced recurring de-pegging events.

In a significant CBDC milestone, DBS, OCBC, and UOB successfully conducted interbank overnight lending transactions using Singapore's first live wholesale CBDC issuance for settlement. MAS plans to expand trials next year by issuing tokenized MAS Bills to Primary Dealers settled with CBDC.

The regulator launched the BLOOM (Borderless, Liquid, Open, Online, Multi-currency) initiative in October 2025, to support industry experimentation with tokenized bank liabilities and regulated stablecoins for settlement, inviting financial institutions and clearing operators to conduct trials.

Chia outlined three critical requirements for scaling tokenized assets: standardized tokens with interoperable networks, deep pools of safe settlement assets, and institutional-grade blockchain networks with clear governance and regulatory compliance.

Chia also added that MAS will publish a Guide on Tokenisation of Capital Markets Products this week, providing regulatory clarity through case studies, while acknowledging that despite commercial launches of tokenized bonds and money market funds, "asset-backed tokens have not yet achieved escape velocity."

The central bank emphasized a "co-opetition" model where market participants cooperate on standards while competing for liquidity, working through initiatives like Project Guardian to develop global tokenization frameworks.