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Singapore's Stablecoin Rules Are Here: What It Means for Cross-Border Payments

A Report by CYS Global Remit FinTech Development Unit


MAS has built one of the world's most rigorous stablecoin frameworks. As it moves toward full implementation, businesses and individuals sending money across borders need to understand what's changing.


From Experiment to Regulation

Stablecoins are digital tokens designed to maintain a fixed value against a fiat currency such as the US dollar or Singapore dollar. By 2024, total global stablecoin transaction volume reached levels exceeding the combined throughput of Visa and Mastercard.


Singapore has responded with a regulatory framework that is both rigorous and forward-thinking. In August 2023, MAS finalized its Single-Currency Stablecoin (SCS) Framework. This is one of the first in the world to establish binding rules for stablecoin issuers. The framework is expected to come into full force some time soon during mid-late of 2026.


What the MAS Framework Requires

The SCS Framework applies to stablecoins pegged to the Singapore dollar or any G10 currency (including the US dollar, euro, and British pound) that are issued in Singapore. Issuers wishing to carry the official 'MAS-regulated stablecoin' label must meet strict requirements. Some key requirements are:


  • Full reserve backing: reserve assets must always equal 100% of stablecoins in circulation, held in high-quality liquid assets

  • Segregated reserve accounts with monthly independent attestations and annual audits

  • Minimum capital and liquidity buffers

  • Redemption rights: holders must be able to redeem at par within five business days

  • Business restrictions: issuers may only issue stablecoins (no lending or unrelated activities)

  • Transparency obligations: a published whitepaper covering the stablecoin's mechanism, risks, and reserve audit results


Stablecoins which fulfills all requirements under the framework can be applied under MAS for their stablecoins to be recognized and labelled as 'MAS-Regulated Stablecoin'. Having such a label will distinguish regular market ‘stablecoins’ from MAS-regulated ones, and any misrepresentation of this label is a punishable offence*(Financial Penalties or imprisonment).  


Non-bank issuers with stablecoins in circulation exceeding S$5 million must obtain a Major Payment Institution (MPI) license under the Payment Services Act.


A Global Context: Regulation Converging

Singapore is not alone in moving on stablecoins. In July 2025, the United States enacted the GENIUS Act, creating a federal licensing regime for payment stablecoins. The European Union's Markets in Crypto-Assets (MiCA) regulation, already in force since mid-2024, covers stablecoin issuers across all EU member states. The United Kingdom is advancing similar rules under its Financial Services and Markets Act framework.


The convergence of regulatory frameworks globally is significant. It means that stablecoins used across multiple jurisdictions must comply with multiple sets of rules and that institutions handling them, including payment service providers and remittance firms, must ensure their AML/CFT controls extend into digital token flows.


What Does This Mean for Cross-Border Payments?

For businesses and individuals sending money across borders, the regulated stablecoin environment offers both opportunity and context:


  • Regulated stablecoins may increasingly serve as settlement instruments in international payment corridors, enabling faster and lower-cost transfers when operating on blockchain rails

  • However, the compliance infrastructure required(KYC, AML screening, Travel Rule obligations, reserve audits) means that not all stablecoin-based payment services are equal. Those operating within MAS's regulated perimeter offer materially higher assurance

  • For cross-border payments involving Singapore, the MAS framework provides clear guardrails that distinguish regulated instruments from unregulated alternatives


Established, MAS-licensed payment service providers remain the most reliable route for cross-border transfers and as stablecoin infrastructure matures within Singapore's regulated framework, the distinction between traditional and digital payment rails may narrow considerably.


MAS's Tokenized Bills Trial

In November 2025, MAS also announced trials for tokenized MAS bills. This is a step toward integrating regulated digital instruments into Singapore's broader financial infrastructure. This signals a long-term vision where blockchain-based settlement tools, operating within a clear regulatory perimeter, become part of the mainstream financial system.


Sources

Monetary Authority of Singapore (MAS) — MAS Finalises Stablecoin Regulatory Framework (August 2023): https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework  

MAS — Payment Services Act 2019: https://www.mas.gov.sg/regulation/payments 

Financial Stability Board (FSB) — Cross-Border Payments Annual Report 2025: https://www.fsb.org  

Paxos — The Regulatory Landscape for Stablecoins: What Banks and FIs Need to Know: https://www.paxos.com/blog/regulatory-landscape-for-stablecoins  

Singapore Legal Advice — What Are Stablecoins and How Are They Regulated? (November 2025): https://singaporelegaladvice.com/law-articles/what-are-stablecoins 

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