MAS Proposes Stablecoin Yield Ban Under Payment Services Act Amendment
Singapore's Monetary Authority consults on rules barring yield payments on stablecoins and requiring 100 percent segregated reserves for tokens in circulation.
The Monetary Authority of Singapore has proposed amending the Payment Services Act to prohibit stablecoin issuers from paying any yield or interest-like benefits to holders.
Under the draft rules, issuers would be required to hold assets equal to at least 100 percent of tokens in circulation at all times, with those assets kept in accounts separate from the issuer's own funds.
The regulator states that stablecoins should serve strictly as payment instruments rather than investment or yield-generating products.
Open questions
The consultation period closes on 16 October 2026. No implementation date or transitional provisions have been set.
The precise scope of prohibited yield or benefits and any final implementation timeline remain subject to the outcome of the consultation.