A Singapore stablecoin licence is about to become a statutory permission rather than a policy expectation. The Monetary Authority of Singapore published proposed amendments to the Payment Services Act 2019 on 1 September 2026, moving single currency stablecoin issuance into the payments licensing perimeter. Feedback closes on 16 October 2026.
The practical read for a licensing decision is that the licence is becoming two things at once. It is a permission to carry on a regulated payment service, and it is the only route to calling your token a MAS-regulated stablecoin. Any firm that treated the 2023 framework as already binding should work out which of its current claims rest on policy rather than statute, because that gap is what these amendments close.
What the proposals actually do
Three mechanisms sit in the proposed text. First, a licensing regime for Singapore-incorporated issuers of single currency stablecoins pegged to the Singapore dollar or a G10 currency. Second, a recognition regime for foreign issuers of equivalent tokens already supervised under a comparable home regime. Third, powers for MAS to designate a stablecoin as systemic where it could disrupt Singapore's financial system.
The labelling restriction is the part founders underrate. Only licensed issuers may describe themselves as MAS-regulated stablecoin issuers or market their tokens as MAS-regulated stablecoins. That turns a supervisory status into a distribution asset and makes the licence a commercial question, not only a legal one.
Who needs a Singapore stablecoin licence?
The trigger is issuance rather than circulation. The regime is aimed at issuers incorporated in Singapore putting out single currency stablecoins pegged to the Singapore dollar or a G10 currency. Foreign issuers are not expected to take a Singapore licence for the same token: the recognition route is built for them, and it turns on MAS accepting the home regime as adequate. That makes your existing home authorisation a gating factor for Singapore market access, which is a very different planning problem from applying locally.
Firms holding a payment institution licence should not assume coverage. Stablecoin issuance is being set up as a distinct regulated payment service, so it sits alongside the permissions most payments firms already hold rather than inside them. For how other regimes draw that line, see our e-money and payments comparison and the current entry for Singapore's e-money regime.
Reserves and the interest ban change the model
Licensed issuers would have to hold reserves equal to 100 per cent of tokens in issue in high quality liquid assets, and to redeem at par. The proposals would also stop licensed issuers paying interest or any other return to token holders.
That last point deserves more attention than it has had. A large share of stablecoin business models route reserve income back to holders or to distribution partners as yield. If Singapore closes that off for tokens carrying the regulated label, issuers face a straight choice between the label and the yield, and distribution economics have to be rebuilt around fees instead of pass-through returns. Anyone running one structure across several jurisdictions should test it against this before assuming it still travels.
What to do before 16 October
Three things are worth doing now. Establish whether your token is in scope as a single currency stablecoin pegged to the Singapore dollar or a G10 currency. If you issue from outside Singapore, form a view on whether your home regime is likely to be treated as comparable, because recognition is your access path and you cannot apply your way around it. And if your economics depend on paying holders a return, respond to the consultation while the position is still open.
Our licensing reports set out how these regimes compare in practice.
Sources
- MAS consults on legislative amendments to implement stablecoin regulatory framework, Monetary Authority of Singapore, 1 September 2026
- Consultation on proposed amendments to the Payment Services Act for stablecoin regulation, Monetary Authority of Singapore, 1 September 2026, closes 16 October 2026
- MAS consults on implementation of Singapore stablecoin regime, Reed Smith, September 2026
Last verified 17 September 2026. Informational only, not legal advice. Verify with the relevant regulator and qualified counsel before acting.