Singapore’s central bank is preparing to launch a series of trials next year that will test the issuance of tokenised Monetary Authority of Singapore bills as part of a broader shift toward a regulated and scalable digital asset environment. The plan reflects the country’s intention to accelerate the adoption of tokenised financial instruments while maintaining strong institutional safeguards. Officials stated that although tokenisation has gained traction, asset backed tokens still require stronger momentum before they become mainstream tools in global markets. To support this next stage, the regulator is developing legislation aimed at ensuring stablecoins meet strict standards related to reserve composition and redemption reliability. These requirements are viewed as essential for creating a foundation that can support institutional grade settlement systems. The announcement comes during an international push to enhance operational resilience in digital finance as more financial institutions begin testing tokenised structures for liquidity management and cross market efficiency.
Current initiatives include participation in the BLOOM programme, which examines the practical use of tokenised bank liabilities and regulated stablecoins across various settlement models. The Monetary Authority has confirmed that three major domestic banks have completed overnight lending transactions using a wholesale central bank digital currency, marking a significant early step for programmable money in institutional environments. The regulator intends to expand these trials by integrating tokenised MAS bills into the wholesale CBDC framework, allowing for test scenarios that connect traditional government instruments with digitally settled workflows. These developments demonstrate the growing alignment between traditional financial markets and emerging on chain models. Institutions monitoring the progression of tokenisation view Singapore’s roadmap as a potential template for other jurisdictions exploring similar forms of infrastructure. The structured expansion of these trials indicates a long term effort to create a fully interoperable and compliant ecosystem for tokenised assets.
Singapore is also intensifying coordination with international central banks to build compatibility across digital asset systems. The Monetary Authority has entered agreements to collaborate with the Bank of England and the Bank of Thailand on experiments aimed at enabling fast and secure cross border foreign exchange transactions using digital settlement layers. A separate memorandum of understanding with the Deutsche Bundesbank supports research into cross border settlement models for tokenised assets. These partnerships highlight the increasing need for global standardisation as digital markets develop new forms of liquidity and demand higher levels of interoperability. The regulator will publish guidance on tokenised capital markets products to provide clarity for financial institutions pursuing compliant digital asset strategies. For Stable 100 readers, the progress of Singapore’s initiatives underscores the continued evolution of institutional digital finance and reinforces the role of regulated tokenisation as a core component of future market infrastructure.
