Singapore is reconsidering a key pillar of its stablecoin policy, opening the door for certain foreign-issued and jointly issued tokens to potentially qualify under its regulatory framework.

The Monetary Authority of Singapore (MAS) launched a public consultation on Tuesday proposing legislative changes to implement its stablecoin framework, while also introducing new policies that reflect developments since the framework was finalized in 2023.

Under the proposals, a stablecoin jointly issued by a Singapore-based issuer and a foreign issuer could qualify as an “MAS-regulated stablecoin” if the risks associated with its cross-border structure can be adequately managed.

MAS is also considering recognizing a limited number of foreign-issued stablecoins that are regulated under comparable overseas frameworks. The regulator said such tokens could potentially be permitted for cross-border wholesale transactions.

The proposals represent a notable rethink of Singapore’s earlier approach. Under the framework finalized in 2023, qualifying stablecoins generally had to be issued solely in Singapore and backed by reserves supporting tokens pegged to the Singapore dollar or a G10 currency.

At the time, MAS highlighted several obstacles to recognizing stablecoins issued across jurisdictions, including questions over regulatory equivalence and cooperation with overseas authorities. The regulator also pointed to difficulties tracing the origin of commingled stablecoins and determining whether reserves held overseas would be sufficient to meet redemption demands.

Now, as stablecoins become increasingly intertwined with global payments and financial markets, Singapore appears to be exploring whether those barriers can be managed rather than simply keeping foreign-issued tokens outside its framework.

Singapore Wants Global Stablecoins — But on Its Terms

The potential opening to foreign stablecoins does not mean MAS is loosening its regulatory grip.

The consultation proposes amendments to the Payment Services Act (PSA) to formally implement the 2023 stablecoin framework, alongside a broader set of safeguards governing how regulated stablecoins are issued and managed.

The rules would cover reserve-backed value stability, capital requirements, redemption at par and issuer disclosures. Only issuers licensed under the framework would be allowed to market themselves as MAS-regulated stablecoin issuers or label their tokens as “MAS-regulated stablecoins.”

MAS is also proposing to prohibit issuers from paying interest on regulated stablecoins, while requiring them to conduct stress tests and maintain recovery and orderly wind-down plans.

Consumer protection would receive additional attention, with issuers required to safeguard customer money received before the corresponding stablecoins are issued.

Stablecoins that fall outside the dedicated regulatory framework would continue to be treated as digital payment tokens under Singapore’s existing rules.

The consultation is open for public feedback until October 16, giving the industry a chance to weigh in on a potential turning point in Singapore’s stablecoin policy.

If adopted, the proposals could mark a significant evolution in Singapore’s approach: rather than requiring qualifying stablecoins to remain entirely domestic, MAS could allow a carefully selected group of foreign and cross-border tokens into its regulated ecosystem — provided they meet Singapore’s standards for reserves, redemption, transparency and financial resilience.