Singapore’s Central Bank To Test Tokenized Bills With Cbdc Settlement

What Happened

The framework, introduced in August 2023, applies to single-currency stablecoins pegged to the Singapore dollar or major global currencies such as the US dollar and euro.

MAS has also launched the BLOOM initiative to encourage industry trials involving tokenized bank liabilities and regulated stablecoins, reinforcing Singapore’s ambition to lead in safe and scalable tokenized finance.

Coinbase Business Launches in Singapore

As reported, Coinbase has expanded its reach beyond the United States with the official launch of Coinbase Business in Singapore, marking its first international rollout of the crypto operating platform.

Bybit is also reportedly considering similar moves but has not officially announced its relocation strategy.

Market Context

“Are asset-backed tokens clearly out of the lab? Without a doubt,” Chia said. “But have asset-backed tokens achieved escape velocity? Not yet.”

“Under our regime, we have given importance to sound reserve backing and redemption reliability,” he said, emphasizing that unregulated stablecoins have shown a “patchy record” in maintaining their pegs and could cause systemic stress similar to the 2008 money market crisis.

The move allows Singaporean startups and small-to-medium businesses (SMBs) to access instant USDC payments, global payouts, integrated trading tools, and automated accounting.

Dubai and Hong Kong have emerged as leading alternatives for digital asset firms amid rising regulatory pressure in other markets.

Why It Matters

DBS, OCBC, and UOB have tested interbank lending using the Singapore dollar wholesale CBDC, signaling growing real-world adoption of tokenized finance.

Details

The Monetary Authority of Singapore (MAS) plans to pilot the issuance of tokenized MAS bills that will be settled using central bank digital currency (CBDC).

Key Takeaways:

MAS will pilot tokenized government bills settled with a CBDC.

The move marks a major step toward integrating blockchain-based assets into Singapore’s financial system.

Speaking at the Singapore FinTech Festival on Thursday, MAS Managing Director Chia Der Jiun said tokenization has evolved beyond the experimental phase and is now seeing real-world use.

Singapore Banks Trial Interbank Lending With CBDC

Chia explained that while tokenized assets can enable instant settlement, reduce intermediaries, and optimize collateral usage, the broader ecosystem still faces significant operational and structural challenges before mass adoption can occur.

As part of its ongoing experimentation, MAS revealed that three of Singapore’s largest banks, including DBS, OCBC, and UOB, have conducted interbank overnight lending transactions using the Singapore dollar wholesale CBDC.

The move aligns with the regulator’s goal of scaling tokenized finance built on reliable, regulated settlement assets. Details of the trial will be unveiled next year.

On the regulatory front, Chia noted that MAS has completed its stablecoin framework and will soon draft legislation.

However, Bitget and Bybit are preparing to reduce their presence in Singapore after the country’s central bank issued a final directive requiring unlicensed crypto firms to halt overseas operations.

In early June, the regulator mandated that all digital token service providers not yet approved under the Payment Services Act must stop serving international clients—regardless of their licensing status.

The MAS order targets firms with offshore clientele or front-office teams based in Singapore and leaves little room for exceptions.

Bitget has already begun relocating staff to crypto-friendly jurisdictions like Dubai and Hong Kong, where regulatory frameworks are more accommodating.