Singapore Sets Clear Framework as Tokenization Initiatives Accelerate
Singapore is moving quickly to shape the next phase of digital finance, finalizing its stablecoin regulatory standards while launching broad trials for tokenized settlement assets. The Monetary Authority of Singapore (MAS) announced these developments at the Singapore Fintech Festival 2025, underscoring the city-state’s push to build resilient, cross-border-ready digital-asset infrastructure.
The latest steps reflect rising institutional demand for systems that ensure value stability, trustworthy settlement, and interoperability across jurisdictions.
Singapore Stablecoin Framework Gains Clarity
MAS confirmed that its stablecoin regime is now complete, with draft legislation underway. The framework places strong emphasis on credible reserve backing, transparent risk controls, and assured redemption processes.
An MAS official noted that while the stablecoin market is still maturing, the asset class can play a crucial role in digital settlements if properly regulated. He warned that without strong oversight, “poorly designed or loosely supervised stablecoins could undermine confidence in the entire ecosystem.”
He emphasized that robust, regulated stablecoins will be essential as tokenized markets scale globally and may eventually require enhanced multinational supervisory rules if they become systemically important.
Tokenized Settlement Experiments Expand
To support diversified settlement infrastructures, MAS is examining three types of settlement assets: regulated stablecoins, tokenized bank liabilities, and central bank digital currencies (CBDCs). The newly launched BLOOM initiative allows financial institutions and settlement networks to conduct real-world trials using these assets.
Industry participants report that tokenized bank liabilities and regulated stablecoins could improve clearing speeds while supporting programmable settlement conditions across markets.
One industry expert noted that Singapore’s approach “creates the foundation for interoperable tokenized finance, allowing institutions to test real settlement flows with institutional safeguards.”
CBDC Progress and Tokenized MAS Bills
Singapore’s wholesale CBDC program has reached a significant milestone, with major local banks completing interbank overnight lending transactions using the first live issuance of a Singapore-dollar wholesale CBDC.
MAS plans to move forward by trialing tokenized MAS Bills, settled using CBDC—a development expected to strengthen liquidity tools and enhance on-chain settlement reliability.
MAS stressed that interoperable networks, cross-border cooperation, and institution-grade regulatory standards will determine how quickly tokenized finance reaches meaningful scale.
In a market rapidly shifting toward tokenized assets, Singapore is positioning itself at the center of the next wave of digital-finance infrastructure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.