- MAS will launch tokenized bills trials in 2026 with settlements using CBDC.
- Central bank finalizes stablecoin regulatory framework emphasizing reserve backing.
- 3 major Singapore banks successfully conduct interbank lending using CBDC.
Singapore’s central bank will hold trials to issue tokenized MAS bills next year and introduce laws to regulate stablecoins as it advances plans to build a scalable and secure tokenized financial ecosystem. The bank’s top official shared the announcement on Thursday.
“Tokenization has lifted off the ground. But have asset-backed tokens achieved escape velocity? Not yet,” said Chia Der Jiun, managing director of the Monetary Authority of Singapore, during a keynote address at the Singapore FinTech Festival.
Legislative framework targets stability
Chia stated MAS has been working on details of its stablecoin regulatory regime and will prepare draft legislation. The framework emphasizes “sound reserve backing and redemption reliability” as core requirements for issuers operating in the jurisdiction.
MAS is also supporting trials under the BLOOM initiative, which explores using tokenized bank liabilities and regulated stablecoins for settlement purposes. The managing director announced that three Singapore banks, DBS, OCBC, and UOB, have successfully conducted interbank overnight lending transactions using the first live trial issuance of Singapore dollar wholesale CBDC.
MAS will expand trials to include tokenized MAS bills settled with CBDC, according to the announcement. Chia expressed concerns about risks posed by poorly regulated stablecoins, noting that unregulated tokens have experienced repeated de-pegging incidents that undermine market confidence. He drew parallels to the 2008 money market fund crisis, highlighting how instability in one issuer can spread to others and erode trust in the broader ecosystem.
International collaboration expands
A regulatory guide on tokenized capital markets products will be published this week. MAS is also working with international counterparts to align standards and support adoption across jurisdictions.
On Thursday, MAS announced agreements to work with other central banks on cross-border transactions and digital assets. The authority will collaborate with the Bank of England and Bank of Thailand to conduct experiments enabling real-time foreign exchange transactions that are fast, secure, and interoperable across different systems.
The central bank also signed a memorandum of understanding with Deutsche Bundesbank to collaborate on cross-border digital asset settlement. The partnership builds on an initiative designed to improve liquidity and efficiency of financial markets through asset tokenization.
The tokenized bills initiative builds on the successful live trial conducted by Singapore’s three major banks. MAS will release additional details about the tokenized bills trial in 2026 following completion of initial CBDC settlement pilots.
Related: https://coinedition.com/standard-chartered-ceo-predicts-a-fully-blockchain-based-global-financial-system/
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Source: https://coinedition.com/singapore-to-trial-tokenized-mas-bills-and-regulate-stablecoins-in-2026/
