Post by : Rameen Ariff

Singapore is stepping up its efforts to build a robust and scalable tokenised financial ecosystem, with the Monetary Authority of Singapore (MAS) announcing plans to trial tokenised MAS bills next year. The central bank also revealed upcoming legislation to regulate stablecoins, reinforcing its commitment to innovation and financial stability in the digital economy.

Addressing the Singapore FinTech Festival, MAS Managing Director Chia Der Jiun said that while tokenisation has gained momentum, it has yet to reach its full potential in global finance. “Tokenisation has lifted off the ground. But have asset-backed tokens achieved escape velocity? Not yet,” he remarked, emphasizing the need for regulatory clarity and technological readiness to unlock large-scale adoption.

The upcoming tokenised MAS bill trials will explore the use of blockchain and distributed ledger technology (DLT) in issuing and settling government-backed securities. The move marks a significant step in Singapore’s push to digitalise financial infrastructure while ensuring that innovation is underpinned by a secure regulatory framework.

Alongside these trials, MAS plans to implement laws governing stablecoins, ensuring they are fully backed by high-quality reserves and adhere to strict operational standards. The central bank believes that clear regulations will help prevent systemic risks while enabling responsible growth in the digital asset space.

Singapore has emerged as a global leader in fintech innovation, balancing rapid technological advancement with prudent oversight. By advancing tokenised assets and regulating stablecoins, the MAS aims to position Singapore at the forefront of the next wave of financial transformation.

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