Singapore Moves to Ban Interest on Regulated Stablecoins Under New MAS Framework

The Monetary Authority of Singapore (MAS) is proposing new rules that would prohibit issuers from paying interest on MAS-regulated stablecoins.

While introducing stronger safeguards around reserves, capital, redemption and customer protection. Issuers would also face mandatory stress testing, recovery planning and orderly wind-down requirements. Only licensed issuers meeting the framework’s standards would be allowed to use the “MAS-regulated stablecoin” designation.

The proposal could also open Singapore’s framework to selected foreign-issued stablecoins operating under comparable regulatory regimes, as well as tokens jointly issued by Singaporean and overseas entities. The interest ban reflects a broader regulatory push to position stablecoins primarily as reliable payment and settlement instruments rather than yield-generating investments. The measures are still proposals, with MAS accepting public feedback until Oct. 16, 2026.

Clever Robot News Desk 2^nd September 2026