Singapore Embraces Tokenisation: A New Era in Financial Innovation

Singapore's central bank plans to trial tokenised MAS bills and introduce stablecoin regulations to create a scalable and secure tokenised financial ecosystem. MAS has made significant strides in the CBDC space, supporting trials and engaging international counterparts to set standards and enhance adoption.

Singapore's central bank is set to initiate trials of tokenised MAS bills next year as it seeks to regulate stablecoins and strengthen a robust tokenised financial ecosystem, according to the bank's top executive.

In a keynote at the Singapore FinTech Festival, Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS), remarked on the ongoing ascent of tokenisation. However, he admitted that asset-backed tokens haven't fully matured. He revealed that MAS is drafting stablecoin regulation with a focus on reliable reserve backing and redemption.

The central bank also backs trials under the BLOOM initiative, exploring tokenised liabilities and regulated stablecoins. Chia noted successful interbank transactions with Singapore's major banks using the initial issuance of a wholesale digital currency. MAS plans further trials, including tokenised bills settled with CBDC.

(With inputs from agencies.)