MAS Stablecoin Framework Becomes Operational: Singapore Issues First Licenses

The Monetary Authority of Singapore's stablecoin regulatory framework, finalized in August 2023, became fully operational in 2025 with the issuance of the first Major Payment Institution licenses for single-currency stablecoins (SCS). The framework requires SCS issuers to maintain reserve assets in cash or cash equivalents equal to 100% of outstanding stablecoins, with reserves held by a custodian in Singapore. Paxos received approval for its USD-backed stablecoin, making Singapore one of the first jurisdictions with a comprehensive regulated stablecoin regime.

• First stablecoin licenses issued under MAS framework
• 100% reserve backing required in cash or cash equivalents
• Reserves must be held by custodian in Singapore
• Only MAS-regulated stablecoins can be marketed as 'MAS-regulated' to retail
• Paxos approved for USD-backed stablecoin issuance in Singapore
• Redemption at par within 5 business days mandatory