Singapore Proposes 100% Reserve Requirement and Yield Ban for Stablecoin Issuers: New MAS Regulations

The Monetary Authority of Singapore (MAS) has unveiled a new regulatory framework proposing that all stablecoin issuers maintain 100% reserves for their digital assets. Under the proposed rules, stablecoin issuers in Singapore would be prohibited from offering yield-generating products on their tokens. This move aims to enhance the stability and credibility of stablecoins like USDT, USDC, and other fiat-backed digital currencies. The MAS framework focuses on value stability, capital adequacy, and redemption standards, positioning Singapore as a leading hub for compliant digital asset regulation. The proposal is expected to impact the broader crypto market, reinforcing investor confidence in stablecoin ecosystems.