Singapore proposes tighter stablecoin rules and ban on holder yield

Singapore is proposing stricter rules for regulated stablecoins, including a ban on issuers paying yield directly to token holders.
The Monetary Authority of Singapore is also seeking continuous 100% reserve backing, segregated custody, stress testing and mandatory wind-down planning.
Only licensed issuers would be permitted to market tokens as MAS-regulated stablecoins under the proposed framework.
The approach aligns Singapore more closely with other major jurisdictions that are treating stablecoins primarily as payment instruments rather than investment products, increasing regulatory clarity while limiting yield-based business models.