MAS sets out its stablecoin law: consultation closes 16 October 2026

Country reference

• Country: Singapore (Wave 1 expansion country)
• Authorities: Monetary Authority of Singapore (MAS)
• Topic: Legislative amendments to implement the MAS Single-Currency Stablecoin (MAS-SCS) framework
• Key date: Consultation published 1 September 2026; comments by 16 October 2026
• Law: Payment Services Act 2019

What MAS announced

On 1 September 2026 MAS published a consultation paper on amendments to the Payment Services Act 2019 that would put its stablecoin framework into law. The amendments set out how issuers qualify to be MAS-regulated and the safeguards they must meet.

How the framework works

• Only issuers licensed under the framework may describe themselves as licensed MAS-regulated stablecoin issuers and label their tokens “MAS-regulated stablecoins”.
• Key requirements cover value stability, capital, redemption at par and disclosure.
• Other stablecoins are treated as Digital Payment Tokens, with the consumer protection safeguards that apply to those tokens.

New policy positions in the paper

• Multi-jurisdictional issuance. Stablecoins issued jointly by a Singapore and a foreign issuer could be regulated and labelled under the framework, provided risks are sufficiently mitigated.
• Foreign stablecoins. MAS proposes to recognise a limited number of foreign-issued stablecoins regulated under a comparable framework, with cross-border wholesale use in mind.
• Financial stability. No interest to be paid on MAS-regulated stablecoins, plus stress testing and plans for recovery and orderly wind-down of issuers.
• Consumer protection. Safeguards similar to those for existing licensees, including protection of customer money received before the stablecoins are issued.

Why treasurers should care

MAS frames trusted stablecoins as a possible settlement asset in tokenised financial markets. If the law passes as proposed, a corporate treasury could tell a regulated token from an unregulated one by its label, and would know the issuer must redeem at par.

What to do now

• Issuers and payment firms: review the draft requirements and respond through FormSG by 16 October 2026.
• Treasury teams using or testing stablecoins: record which tokens you hold and who issues them.
• Do not treat any token as MAS-regulated until the law is in force and the issuer is licensed.

Our take

The ban on interest keeps these tokens as payment instruments, not deposit substitutes. For corporate users, the gain is clarity on redemption and reserves. The framework is still a proposal, so policies written now should allow for changes in the final law.