A Strategic Shift from 2023 Policy
Singapore’s Monetary Authority has signalled a significant policy pivot regarding foreign-issued stablecoins. Under the 2023 framework, only stablecoins issued within Singapore could qualify for MAS regulation. The 2026 consultation paper formally abandons this restriction, introducing a recognition pathway for a limited number of foreign-issued stablecoins regulated under comparable overseas frameworks.
This shift recognises the increasingly cross-border nature of stablecoin issuance and the practical reality that many stablecoins circulate globally without being issued in a single jurisdiction. MAS has indicated it will take a selective and risk-based approach to recognising foreign stablecoins, citing their potential use in cross-border wholesale transactions.
Joint Issuance: A New Model for Multi-Jurisdictional Stablecoins
Beyond recognising foreign-issued tokens, the 2026 consultation introduces a novel concept: joint issuance. Under this model, a stablecoin can be issued jointly by a Singapore-based entity and a foreign issuer, provided the associated risks are adequately mitigated. The Singapore issuer must hold a stablecoin issuance licence and comply with all requirements applicable to MAS-regulated stablecoins.
This joint issuance framework is particularly significant for large global stablecoin issuers that operate across multiple regulatory jurisdictions. It allows them to maintain a single fungible token while satisfying Singapore’s regulatory requirements through a local licensed entity.
Recognition Requirements: Comparable Regulation and Supervisory Cooperation
For foreign stablecoins to qualify as MAS-recognised stablecoins, they must be subject to regulation in their home jurisdiction that is comparable to Singapore’s standards. MAS has emphasised that recognition will be contingent on supervisory cooperation arrangements with the foreign regulator.
The recognition regime is established under a new Part 2B of the PS Act, which sets out the conditions under which foreign-issued stablecoins may be brought within the MAS-SCS framework. MAS intends to admit only a limited number of well-regulated foreign stablecoins, focusing on those that serve genuine cross-border payment and settlement use cases.
Designated Systemic Stablecoins: A Safety Net for Financial Stability
Even stablecoins that fall outside the MAS-SCS framework — including foreign-issued tokens and algorithmic stablecoins — are not entirely beyond MAS’s regulatory reach. The consultation paper proposes a statutory power for MAS to designate any stablecoin as a “designated systemic stablecoin” where such designation is necessary to prevent systemic risk events or disruption to Singapore’s financial system.
Issuers of designated systemic stablecoins would be required to comply with key requirements in line with those for MAS-regulated stablecoins, failing which MAS may restrict the stablecoin’s circulation in Singapore. This provision ensures that even unregulated stablecoins with significant market presence in Singapore remain subject to supervisory oversight.
Real-World Context: Cross-Border Trade Finance and Ripple’s RLUSD Pilot
The practical benefits of Singapore’s recognition regime are already being tested in real-world scenarios. In March 2026, Ripple announced its participation in Singapore’s MAS BLOOM sandbox to pilot the RLUSD stablecoin for traditional trade finance. The pilot falls under MAS’s Project Guardian, a regulatory sandbox designed for institutional participants to experiment with tokenised assets and digital money.
Ripple’s use of RLUSD — a USD-pegged stablecoin — in cross-border trade finance illustrates the exact use case that MAS’s foreign recognition regime aims to facilitate. By allowing well-regulated foreign stablecoins to operate under MAS recognition, Singapore positions itself as a hub for stablecoin-powered wholesale transactions that bypass traditional correspondent banking rails.
The consultation paper is available on the MAS website, with feedback accepted until 16 October 2026.
