The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act, requiring stablecoin issuers to always hold at least 100% of the circulating tokens in equivalent assets as reserves, which must be segregated from the issuer’s own funds and only held with licensed financial institutions.

The proposal also prohibits issuers from paying interest or other yields linked to stablecoin holdings to holders, on the grounds that stablecoins are intended for payments rather than investment or yield generation. This stance is consistent with the U.S. GENIUS Act and the EU MiCA regulation. The consultation also considers limited recognition for foreign stablecoins regulated under equivalent overseas frameworks. The consultation closes on October 16, and the implementation date has not yet been announced.

MAS Deputy Managing Director Ho Hern Shin stated that trusted and well-regulated stablecoins can serve as reliable settlement assets in the tokenized financial market, while reducing risks for users and the broader financial system.