Singapore’s Central Bank Moves Toward Real-World Tokenization
The Monetary Authority of Singapore (MAS) is preparing to launch a groundbreaking trial of tokenized MAS bills settled with central bank digital currency (CBDC). This initiative marks a significant step in the country’s ongoing efforts to integrate blockchain technology into its financial ecosystem. Details of the project are expected to be revealed in 2026.
In a recent speech at the Singapore FinTech Festival, MAS Managing Director Chia Der Jiun emphasized that tokenization has matured beyond laboratory tests. “Are asset-backed tokens clearly out of the lab? Without a doubt,” he stated. “But have asset-backed tokens achieved escape velocity? Not yet.”
Tokenization Enters Real-World Applications
Chia explained that tokenized assets offer round-the-clock settlement, fewer intermediaries, and more efficient collateral use, yet challenges remain before large-scale adoption can be achieved. The upcoming trial will test whether digital MAS bills, settled directly in CBDC, can enhance liquidity and settlement efficiency for primary dealers.
The move follows earlier MAS-led experiments where DBS, OCBC, and UOB successfully conducted interbank overnight lending transactions using a wholesale CBDC. These initiatives reflect Singapore’s broader ambition to scale tokenized finance safely within a regulated framework.
Stablecoin Regulation and the BLOOM Initiative
Singapore continues to refine its stablecoin regulations, focusing on sound reserve backing and reliable redemption mechanisms. The MAS has completed its regulatory framework for single-currency stablecoins pegged to the Singapore dollar and major global currencies such as the U.S. dollar and euro.
Chia warned that unregulated stablecoins have a “patchy record” of maintaining their pegs, posing systemic risks similar to the 2008 financial crisis. To foster innovation under safe conditions, the MAS has launched the BLOOM initiative, designed to support industry trials with tokenized bank liabilities and regulated stablecoins for settlement.
A Key Step Toward a Tokenized Financial Future
This new trial underscores Singapore’s determination to become a global leader in digital finance. By combining CBDC infrastructure with tokenized assets, MAS is setting the stage for faster, safer, and more transparent financial transactions — signaling that the future of finance is rapidly becoming tokenized and regulated.
Disclaimer
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