by Dean
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16 October 2026 is the deadline to comment on MAS’s proposed amendments to the Payment Services Act 2019. Published on 1 September, the consultation sets out how issuers could qualify to issue MAS-regulated stablecoins and what safeguards they would need to meet. The amendments remain proposals.
Who would be affected?
| Firm or activity | Proposed treatment |
|---|---|
| Singapore issuer | A licensing route for Singapore-incorporated issuers of single-currency stablecoins pegged to the Singapore dollar or a G10 currency. |
| Joint Singapore and foreign issuers | Potential eligibility under the MAS framework, subject to conditions and case-by-case exemptions. |
| Foreign issuer | Possible recognition of a limited number of foreign-issued stablecoins regulated under comparable overseas frameworks. |
| DPT service provider | Potential exposure to restrictions on circulating a stablecoin designated as systemic. |
What would issuers need to demonstrate?
MAS’s 2023 framework set out expectations for reserves, capital, redemption and disclosure. The 2026 consultation proposes amendments to the Payment Services Act to implement the framework.
Reserve assets would need to cover the par value of stablecoins in circulation, with controls over eligible assets, segregation, custody and risk. The proposed issuer requirements include base capital of the higher of S$1 million or 50% of annual operating expenses. Liquid assets would need to equal the higher of 50% of annual operating expenses or the amount needed for recovery or an orderly wind-down.
MAS’s 2023 position was redemption at par within five business days of a request. Firms should assess how the proposed legislation and subsequent detailed rules would apply to their redemption processes.
What is new in the 2026 proposals?
MAS proposes to prohibit interest on MAS-regulated stablecoins, safeguard customers’ money received before issuance, and require stress testing and recovery and orderly wind-down plans. The consultation also addresses money payable after redemption and issuers’ technical ability to trace, freeze or burn stablecoins linked to illicit activity.
For joint issuance, proposed conditions address foreign regulatory standards, allocation of reserves and holders’ redemption rights. MAS also proposes powers over stablecoins designated as systemic. A DPT service provider could face restrictions on circulating a designated stablecoin that fails to meet applicable requirements.
What should firms do before 16 October?
Prospective issuers should map their entity structure, reserves, custodians, capital, redemption process and disclosures against the proposals. Joint and foreign issuers should identify where responsibilities and holder rights differ across jurisdictions. DPT service providers should review the stablecoins they offer and plan how they would respond to a designation or circulation restriction.
Record unclear provisions for a consultation response. Assign owners to controls that can be prepared now, while keeping proposed requirements separate from current obligations.
Pro Tip: Run a full redemption test. Follow a request through reserve liquidation, customer payment, recordkeeping and escalation. It may reveal gaps that a policy review misses.
Frequently asked questions
Is the 2026 framework already law?
No. MAS is consulting on amendments to implement its stablecoin framework.
Will MAS issue only a small number of licences?
MAS has proposed recognising a limited number of foreign-issued stablecoins. It has not said that only a small number of Singapore issuer licences will be granted.
Is Your Firm Ready for MAS’s Stablecoin Framework?
Alder’s outsourced compliance and compliance audit teams can review your licensing route, reserves, redemption controls, safeguarding and governance against the proposals.
About the Author: Dean
