Singapore proposes stablecoin license with full reserves - crypto.news

The Monetary Authority of Singapore (MAS) has issued a consultation paper proposing a new regulatory framework for stablecoin issuers. Under the draft rules, entities that issue single-currency stablecoins in Singapore would need to obtain a license from the central bank and maintain full reserve backing at all times. The proposal intends to ensure that each token in circulation is covered by low-risk, liquid assets, with redemption at par upon request — a direct response to the fragility that repeated de-pegging events have exposed across the market.

From a market perspective, the framework signals a shift toward formal recognition rather than outright restriction. A licensing regime backed by stringent reserve requirements would give Singapore-based stablecoins a clearer legal status, which supports demand from institutions looking for dependable digital-currency settlement rails. It also sets a benchmark for other Asia-Pacific jurisdictions that are still deliberating their own approaches to the asset class.

What warrants close attention is the final form of the requirements — particularly how reserves are valued, audited, and held — and how the framework aligns with emerging global standards. Market participants will also watch how issuers adjust their current operating models, and whether the compliance burden ultimately channels issuance toward fewer, better-capitalized players.