Singapore proposes 100% reserves and a ban on yields for stablecoin issuers - Cryptonews.net

Singapore’s central bank has unveiled a regulatory proposal aimed at stablecoin issuers, demanding full 100% reserve backing and prohibiting the payment of yields on these digital assets. Under the framework, issuers would need to hold reserves in cash or high-quality government bonds, ensuring that every token in circulation is fully redeemable at face value. The ban on yield payments is designed to prevent stablecoins from functioning like interest-bearing deposit products, reinforcing their role as a stable medium of exchange rather than an investment vehicle.

For the broader market, this development signals a tightening of oversight around a fast-growing segment of digital finance. If adopted, the rules would distinguish regulated stablecoins from unbacked or yield-generating rivals, potentially shaping how global regulators approach equivalent assets. Investors and stakeholders should monitor which issuers can comply with the reserve and disclosure requirements, as well as how this aligns with other jurisdictions' evolving standards. The proposal underscores a growing international focus on transparency and consumer protection, with reserve audits and redemption rights expected to become central benchmarks for credibility in the space.