Stablecoins Explained: MAS P015-2026 and What Banks Must Plan

In short: A stablecoin is a digital asset designed to hold a constant value against a fiat currency. On 1 September 2026 the Monetary Authority of Singapore proposed, in Consultation Paper P015-2026, a stablecoin issuance licence with par-value reserves and redemption. It is a proposal, not law. Comments close 11.59 PM on 16 October 2026.

01 Key facts

02 Stablecoins in plain English: what they are, how they are issued, what they are used for

What are stablecoins? MAS describes a stablecoin as a digital asset designed to maintain a constant value against one or more specified fiat currencies or assets (MAS media release, 1 September 2026). The Financial Stability Board adds a warning every treasurer should keep: there is no universally agreed legal definition, and the word "stablecoin" does not itself promise that the value is stable (FSB, 2023). Stability is something an issuer must earn through reserves and redemption, and a regulator must test.

How are stablecoins issued? An issuer creates ("mints") tokens when customers hand over money, holds reserve assets against them, and promises to buy tokens back ("redeem") at face value. Under the proposed MAS framework, minting, managing the reserve assets and redeeming at par are all part of issuance, and every obligation sits on the licensed issuer (para 2.7). A token is only as good as the reserve and the redemption promise behind it. Algorithmic designs are a different animal, and MAS would still require their issuers to provide information on their issuance business (footnote 10).

What are stablecoins used for? MAS says well-regulated stablecoins can serve as a trusted medium of exchange, including for "on-chain" purchase and sale of digital assets, and as a bridge between fiat and digital-asset ecosystems (MAS, 2026 and 2023 releases). MAS also points to cross-border wholesale use cases (2026 release). The FSB lists payments, store of value, speculative trading, lending and borrowing as typical uses (FSB, 2023).

How are stablecoins regulated? Singapore treats stablecoins as a subset of digital payment tokens (DPTs) under the Payment Services Act 2019 (para 2.3). Since MAS finalised its framework on 15 August 2023, the plan has been a licence for single-currency stablecoins pegged to the Singapore dollar or a G10 currency, backed by reserves, redemption at par, capital and disclosure, with the "MAS-regulated stablecoin" label reserved for licensed issuers (MAS, 2023). Tokens outside it stay DPTs, with consumer safeguards. Internationally, the FSB recommends "same activity, same risk, same regulation".

03 What does the MAS proposal change?

• Not law yet. This is a consultation, with draft amendments published as Annex C. MAS says it will consult on subsidiary legislation later (para 1.2).
• Definitions. Stablecoins would sit inside "digital payment tokens", be separated from e-money, and, if MAS-regulated, not count as other financial instruments (paras 2.3 to 2.4).
• A new "stablecoin issuance" licence class. Only licensed issuers could hold a stablecoin out as "MAS-regulated" (paras 2.5 to 2.6). Reserves would be at least equal to par value and redemptions met within MAS-prescribed timeframes (para 2.9). Issuers could not run other regulated activities, other than digital payment token services incidental to their own stablecoin (para 2.10).
• New since 2023: no interest or other benefit paid to holders (para 3.2). MAS is weighing a minimum share of reserves in cash or bank deposits, noting that the UK and EU require, or will require, 5% to 30% for non-systemic and 40% to 60% for systemic stablecoins (para 3.7). MAS has proposed no figure.
• Resilience. Quarterly stress tests reviewed by the board (para 3.16); board-approved recovery and wind-down plans with independently verified resources (para 3.19); ability to trace, freeze and burn tokens (para 3.22). Issuers would join the Financial Services and Markets Act 2022 "pertinent financial institutions", with only recovery and wind-up rules applied if non-systemic (para 3.20).
• Systemic stablecoins. MAS could designate a stablecoin as systemic, wherever issued, and restrict its circulation in Singapore if the issuer fails requirements (paras 4.1, 4.8). Issuers would meet the core framework: segregated, independently attested reserves, redemption at par, base capital and white paper (para 4.4), drawing on the Financial Stability Board's 2023 recommendations.
• Offshore issuance. Multi-jurisdiction issuance would be possible by case-by-case exemption if the foreign regime is substantively equivalent (paras 5.2 to 5.6). Rebalancing arrangements need MAS approval, with daily records submitted monthly (para 5.7). MAS also proposes recognising a limited number of foreign-regulated stablecoins (para 5.12).

04 Who is affected?

Firms planning a single-currency stablecoin, groups wanting to call a token "MAS-regulated", and foreign issuers seeking recognition (para 5.12). MAS anticipates a limited number of stablecoins being authorised or recognised (para 1.3).

Banks and merchant banks would have to issue through a separate non-bank legal entity (para 6.3). Wholesale banks and merchant banks would effectively be barred from issuing Singapore-dollar stablecoins that retail users can trade freely, though wholesale-only tokens, for example for trade finance, remain possible (paras 6.6 to 6.7). Licensed DPT service providers could face retail disclosures, risk warnings and limits on calling non-MAS-regulated tokens "stablecoins" (para 6.2).

05 What should banks and treasury teams do next?

Treat 16 October as a deadline for your treasury and your board, not a footnote. Our view: the firms that respond now will shape the rules; the rest will inherit them. Five moves:

1. Decide this week whether you will respond. Submissions are published with the respondent's name unless confidentiality is requested (paras 1.5 to 1.6).
2. Stress your reserve model against par-value backing, the cash-share ranges MAS cites, and quarterly testing.
3. Settle the entity question early. If you are a bank, map the separate issuer entity and where reserve cash will sit (para 6.3).
4. Audit your language. Check marketing for "stablecoin" claims on tokens that will not be MAS-regulated.
5. Scope a trace, freeze and burn capability. MAS will set specifics later by Notice (para 3.22).

06 Deadlines and penalties

The only fixed date is 16 October 2026. The paper sets no penalty amounts and no commencement date. The recurring cycle it proposes:

07 Frequently asked questions

What is a stablecoin?

A digital asset designed to keep a constant value against one or more specified fiat currencies or assets (MAS, 1 September 2026). The FSB cautions that the term does not guarantee stability.

What reserves would MAS require for a stablecoin issuer?

At least the par value of all stablecoins in circulation (para 2.9). MAS is also considering a minimum share held in cash or bank deposits but has proposed no figure (para 3.7).

Is the MAS stablecoin licence already in force?

No. The paper is a consultation. Comments close on 16 October 2026 and MAS will consult on subsidiary legislation later (paras 1.2, 1.6).

Can a Singapore bank issue a MAS-regulated stablecoin?

Under the proposal, yes, but through a separate non-bank legal entity licensed as an issuer (para 6.3).

08 Sources (official, verified 10 October 2026)

1. MAS media release, "MAS Consults on Legislative Amendments to Implement Stablecoin Regulatory Framework", 1 September 2026 – https://www.mas.gov.sg/news/media-releases/2026/mas-consults-on-legislative-amendments-to-implement-stablecoin-regulatory-framework
2. Financial Stability Board, final report (PDF, 17 July 2023) – https://www.fsb.org/uploads/P170723-3.pdf
3. MAS consultation page, "Consultation on Proposed Amendments to the Payment Services Act 2019 for Stablecoins Regulation" (published 1 September 2026; closes 16 October 2026) – https://www.mas.gov.sg/publications/consultations/2026/consultation-on-proposed-amendments-to-the-payment-services-act-for-stablecoin-regulation
4. Consultation Paper P015-2026, full text (PDF, 32 pages) – https://www.mas.gov.sg/-/media/mas-media-library/publications/consultations/pd/2026/sept-2026_consultation-paper-on-proposed-amendments-to-ps-act-for-stablecoins-regulation/consultation-paper-on-proposed-amendments-to-ps-act-for-stablecoins-regulation_vfinal.pdf
5. Annex C: draft amendments to the Payment Services Act (PDF) – https://www.mas.gov.sg/-/media/mas-media-library/publications/consultations/pd/2026/sept-2026_consultation-paper-on-proposed-amendments-to-ps-act-for-stablecoins-regulation/annex-c_consolidated-ps-act-amendment_vfinal.pdf
6. MAS media release, "MAS Finalises Stablecoin Regulatory Framework", 15 August 2023 – https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework
7. MAS, Payment Services Act 2019 page – https://www.mas.gov.sg/regulation/acts/payment-services-act
8. Financial Stability Board, High-level Recommendations for the Regulation, Supervision and Oversight of Global Stablecoin Arrangements: Final report, 17 July 2023 – https://www.fsb.org/2023/07/high-level-recommendations-for-the-regulation-supervision-and-oversight-of-global-stablecoin-arrangements-final-report/

Tags: Digital payments and stablecoins; Cryptocurrency regulation; Financial stability and systemic risk; Consumer protection; AML/CFT; Cross-border stablecoin arrangements; Payment Services Act 2019

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