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The Financial Authority of Singapore (MAS) has introduced plans to trial the issuance of tokenized MAS payments to major sellers that will probably be settled with a central financial institution digital forex (CBDC).
Throughout a speech on the Singapore FinTech Pageant, MAS Director Chia Der Jiun mentioned that three Singapore banks, DBS, OCBC, and UOB, have efficiently performed interbank in a single day lending transactions utilizing the primary stay trial issuance of a Singapore greenback wholesale CBDC for settlement.
Marking SFF’s tenth anniversary, MAS Managing Director Chia Der Jiun delivered his remarks earlier at the moment, sharing his imaginative and prescient for the following decade of finance, anchored on AI and tokenisation.
For extra: https://t.co/9qpcosDL9Z pic.twitter.com/06LNtN3z6f
— MAS (@MAS_sg) November 13, 2025
“As the following certain, MAS will trial the issuance of tokenized MAS Payments to Major Sellers and settled with CBDC,” he mentioned, including that particulars of the trial will probably be launched subsequent yr.
Nonetheless Some Work To Be Carried out Earlier than Tokenized Property Can Obtain “Escape Velocity”
The MAS Director mentioned that tokenized belongings, which he known as “asset-backed” tokens, are “definitely” out of the experimentation section.
“Bonds have been issued natively and settled on chain. Cash market funds have been tokenized. Main banks have supplied tokenized money administration providers to company treasuries,” he mentioned.
Nevertheless, the MAS Director added that these belongings haven’t but achieved “escape velocity.”
He then mentioned that analysts predict that markets are headed for a future the place “most monetary belongings” will probably be tokenized, traded, and settled on chain.” To achieve this future, nonetheless, the MAS Director says “vital progress on a number of fronts” is required first.
Firstly, he believes that market members should present use instances that display “worth and stability for his or her shoppers.” These corporations additionally have to construct “participation and liquidity” for the sector to achieve its potential, in accordance with the MAS director.
He additionally talked about three “essential developments” that have to occur.
The primary of these developments is that asset-backed tokens have to be standardized and the networks that home these tokens have to be interoperable.
Subsequent, he mentioned, there must be a “deep pool of protected and dependable settlement belongings.” Lastly, institutional-grade networks are wanted to facilitate exercise across the tokens, he added.
He then mentioned that the business must keep away from a state of affairs the place there may be fragmentation or an excessive amount of centralization out there.
To attain that, the MAS Director says “co-opetition” is required, the place corporations cooperate to construct a market for asset-backed tokens whereas competing to deliver new merchandise to the market.
Singapore MAS Has Finalized Stablecoin Regulatory Regime
The Director additionally mentioned MAS has made progress with proposed stablecoin regulation. He mentioned that the MAS has finalized its regulatory regime for these tokens and can now work on getting ready draft laws.
“Below our regime, now we have given significance to sound reserve backing and redemption reliability,” he mentioned.
The MAS classifies stablecoins as “digital cost tokens” underneath the Cost Companies Act. It launched a framework again in August 2023 for single-currency stablecoins pegged to the Singapore greenback in addition to main currencies such because the US greenback and the euro.
In his speech, the Director warned that unregulated stablecoins have a “patchy report” of sustaining their pegs to the underlying asset. He additionally mentioned that if this difficulty is just not addressed, it may set off systemic runs just like the 2008 cash market fund failures.
US Stablecoins Presently Dominate The Market
The hassle to control stablecoins in Singapore comes after the US established a regulatory framework for the tokens in July when President Trump signed the GENIUS Act into regulation. This transfer has since kicked off a worldwide stablecoin race, and has additionally seen an growing variety of conventional finance corporations start to discover stablecoins.
Presently, the market is dominated by stablecoins which are pegged to the US greenback. The biggest of those tokens is Tether’s USDT, which has a market cap of greater than $184 billion. Second is Circle’s USDC, with its whole capitalization of greater than $76 billion.
The remainder of the highest ten largest stablecoins are all tokens which are pegged to the buck.
Largest stablecoins by market cap (Supply: CoinMarketCap)
The biggest non-USD stablecoin is Circle’s EURC, which has a a lot smaller capitalization in comparison with USDT of over $298.7 million. After EURC, the next-biggest non-USD stablecoin is EURS with a market cap of over $139 million.
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