Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Singapore Is Testing the Future of Banking

Singapore Is Testing the Future of Banking

CryptotickerCryptoticker2025/11/13 19:27
By:Cryptoticker

Singapore isn’t just talking about digital finance anymore. It’s moving. The Monetary Authority of Singapore has kicked off a major trial that pushes tokenization out of the lab and into the real world. This new experiment brings together tokenized MAS bills and central bank digital currency settlement. In simple terms, Singapore is setting up the rails for a future where traditional finance and blockchain finally work side by side.

Tokenized MAS Bills: What’s Actually Happening?

The central bank is preparing a pilot where MAS bills will be issued in tokenized form to primary dealers. These transactions will settle using wholesale CBDC. Details will come next year, but the direction is clear: Singapore wants to turn old-school financial instruments into programmable digital assets without breaking trust, stability, or regulation.

Singapore Is Testing the Future of Banking image 0

MAS Managing Director Chia Der Jiun made it clear during his FinTech Festival speech that tokenization is no longer stuck in experimentation mode. It’s already powering commercial activity. The only missing piece is scale, and that’s exactly what these trials are designed to unlock.

Why Tokenization Matters Now

What this really means is that the benefits of tokenized finance are finally becoming practical. Chia highlighted the big advantages: around-the-clock settlement, fewer intermediaries, faster collateral movement, and more efficient financial plumbing overall. But he didn’t sugarcoat it. The industry still has to clear structural hurdles before this becomes mainstream.

Three major banks — DBS, OCBC, and UOB — have already completed interbank overnight lending using the Singapore dollar wholesale CBDC. Singapore clearly wants to prove that tokenized finance can work safely at scale when backed by trusted settlement assets.

Stablecoin Rules: Singapore Draws a Hard Line

Chia also turned to stablecoin regulation, pointing out that MAS has already finalised its framework and is preparing legislation. The focus is simple: strong reserves and reliable redemption. Under the Payment Services Act, stablecoins are classified as digital payment tokens, and Singapore’s 2023 guidelines lay out strict rules for single-currency stablecoins pegged to the SGD, USD, EUR, and other major currencies.

Chia didn’t mince words about unregulated stablecoins. Their shaky track record in maintaining their peg can trigger panic similar to the 2008 failures when money market funds slipped under a dollar. Singapore’s stance is clear: only well-backed, tightly regulated stablecoins will be allowed to operate.

BLOOM Initiative: The Next Step Forward

To keep the momentum going, MAS has rolled out the BLOOM initiative. This program supports industry experiments using tokenized bank liabilities and regulated stablecoins for settlement. It’s Singapore’s way of pushing innovation while keeping control of the risks.

Singapore is positioning itself as the global testbed for responsible tokenized finance. Tokenized MAS bills, wholesale CBDC settlement, and strict stablecoin rules all point in the same direction: a future where blockchain-based finance isn’t a novelty but an everyday tool for global markets.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Post-FTX digital asset exchanges simplify futures offerings to comply with regulatory requirements

- Binance delisted RUNEUSD futures to align with post-FTX regulatory demands and evolving user preferences. - The move follows industry-wide transparency efforts like proof-of-reserves initiatives after FTX's 2022 collapse. - Post-FTX trends show growing demand for DeFi solutions and institutional-grade crypto products with enhanced compliance. - Challenges persist in balancing innovation with regulation as exchanges like Binance recalibrate strategies amid shifting market dynamics.

Bitget-RWA2025/11/14 08:16
Post-FTX digital asset exchanges simplify futures offerings to comply with regulatory requirements

Bitcoin News Update: Bitcoin's Death Cross and Global Political Strains Raise Bearish Concerns, Yet Institutional Activity Inspires Optimism

- Bitcoin's recent $105,000 drop triggered bearish signals like the "death cross," raising concerns about a prolonged downturn amid weak institutional/retail demand. - ETF data shows mixed investor sentiment, with $1.1T inflows in U.S. Bitcoin ETFs but $2.5B outflows from Grayscale's Mini Trust, highlighting market fragmentation. - U.S.-China Bitcoin dispute over 127,000 stolen coins and frozen liquidity exacerbates uncertainty, while DeFi integration and miner diversification offer structural support. - A

Bitget-RWA2025/11/14 08:16
Bitcoin News Update: Bitcoin's Death Cross and Global Political Strains Raise Bearish Concerns, Yet Institutional Activity Inspires Optimism

Bitcoin News Update: Institutions Reduce Bitcoin ETF Holdings, Boost Solana Investments Amid Rising Altcoin Interest

- Bitcoin ETFs saw $870M outflows as institutions offloaded positions amid macroeconomic uncertainty and profit-taking pressures. - Ethereum ETFs lost $438M while Solana-based products bucked trends with $118M inflows, reflecting growing institutional demand. - U.S. ETFs recorded $1.22B outflows, contrasting Germany/Switzerland inflows and gold/energy sector gains of $363M and $427M respectively. - SEC's in-kind redemption rules reshaped institutional Bitcoin ETF participation, with Blackrock's IBIT holdin

Bitget-RWA2025/11/14 08:16
Bitcoin News Update: Institutions Reduce Bitcoin ETF Holdings, Boost Solana Investments Amid Rising Altcoin Interest

Polygon and R25 Tackle DeFi Transparency Issues with rcUSD+ Yield Token Designed for Institutional Use

- Polygon partners with R25 to launch rcUSD+, a yield-bearing stablecoin backed by real-world assets like money market funds. - The token generates institutional-grade returns through low-risk investments, addressing DeFi's opacity with transparent asset verification. - rcUSD+ serves as a collateral layer for Polygon-based apps, enabling developers to build RWA-linked DeFi instruments with standardized yield generation. - The integration aligns with rising institutional demand for tokenized assets, leverag

Bitget-RWA2025/11/14 08:16
Polygon and R25 Tackle DeFi Transparency Issues with rcUSD+ Yield Token Designed for Institutional Use