Singapore’s Drive Toward Tokenized Finance
Singapore is intensifying its drive toward resilient tokenized finance as the Monetary Authority of Singapore (MAS) solidifies its stablecoin regulatory framework and initiates extensive settlement trials. This move reflects a growing institutional interest in digital assets and aims to enhance the reliability and scalability of cross-border transactions.
Regulatory Framework for Stablecoins
Speaking at the Singapore Fintech Festival on November 13, 2025, MAS Managing Director Chia Der Jiun emphasized the importance of stablecoins and interoperable tokenization frameworks in this evolving landscape.
“Although regulated stablecoins are still in their infancy, they have the potential to provide much-needed value stability.”
Chia highlighted the necessity for robust regulatory measures to support this stability, warning that an influx of poorly regulated stablecoins could undermine confidence in the market as a whole. He stated that MAS has now defined the characteristics of its stablecoin regulatory regime and is in the process of drafting relevant legislation. This regulatory framework will prioritize sound reserve backing and reliable redemption processes.
Future Supervisory Actions
Moreover, Chia outlined future supervisory actions that may be required as certain stablecoins gain systemic importance. This might entail strengthening regulatory frameworks, enhancing cross-border cooperation, and possibly granting access to central bank services to further secure the ecosystem. This effort is part of Singapore’s broader strategy to establish a dependable and scalable network of settlement assets for tokenized markets across multiple jurisdictions.
The BLOOM Project
To advance this initiative, MAS has introduced the BLOOM project, which encourages industry participants to explore various settlement models using tokenized bank liabilities and regulated stablecoins. Financial institutions and clearing network operators are invited to take part in experimental trials within this framework.
Advancements in CBDC Initiatives
Additionally, Chia reported advancements in the wholesale central bank digital currency (CBDC) initiatives, noting that three major Singaporean banks—DBS, OCBC, and UOB—have successfully executed overnight lending transactions using the pilot issuance of a Singapore dollar wholesale CBDC for settlements. Looking ahead, MAS plans to trial the issuance of tokenized MAS Bills to Primary Dealers, which will be settled using CBDC, with further details expected to be shared next year.
Conclusion
Chia underscored that the successful adoption of tokenized finance hinges on global collaboration, interoperable infrastructures, and high institutional standards that can facilitate meaningful growth in this sector.
