Singapore MAS to test tokenized invoices with CBDC settlement

The Monetary Authority of Singapore (MAS) has announced plans to test the issuance of tokenized MAS invoices to prime brokers that will be settled with central bank digital currency (CBDC).

During a speech At the Singapore FinTech Festival, MAS Director Chia Der Jiun said three Singapore banks, DBS, OCBC and UOB, successfully conducted overnight interbank lending transactions using the first live trial issuance of a wholesale CBDC in Singapore dollars for settlement.

Marking SFF’s 10th anniversary, MAS CEO Chia Der Jiun delivered his speech earlier today, sharing his vision for the next decade of finance, anchored on AI and tokenization.

To find out more: pic.twitter.com/06LNtN3z6f

-MAS (@MAS_sg) November 13, 2025

“As a next step, MAS will test issuing tokenized MAS invoices to primary dealers and settled with CBDC,” he said, adding that details of the trial will be released next year.

There is still work to be done before tokenized assets can reach “escape velocity”

The MAS director said tokenized assets, which he called “asset-backed” tokens, are “without doubt” out of the experimentation phase.

“Bonds were issued natively and settled on-chain. Money market funds were tokenized. Big banks offered tokenized cash management services to corporate treasuries,” he said.

However, the MAS director added that these assets have not yet reached “escape velocity”.

He then said that analysts predict that markets are heading towards a future in which “most financial assets” will be tokenized, traded and settled on-chain. However, to achieve this future, the MAS director says “significant progress on several fronts” is first needed.

First, he believes that market participants must present use cases that demonstrate “value and stability for their customers”. These companies must also strengthen “participation and liquidity” for the sector to reach its potential, according to the MAS director.

He also mentioned three “critical developments” that need to occur.

The first of these developments is that asset-backed tokens must be standardized and the networks that host these tokens must be interoperable.

Next, he added, is to have a “full pool of safe and reliable settlement assets.” Finally, institutional-level networks are needed to facilitate activity around tokens, he added.

He then said that the industry must avoid a situation of fragmentation or excessive centralization of the market.

To achieve this, the MAS director says “coopetition” is needed, in which companies cooperate to create a market for asset-backed tokens while competing to bring new products to market.

Singapore MAS finalized stablecoin regulatory regime

The director also said that MAS has made progress on the stablecoin regulation proposal. He said the MAS had finalized its regulatory regime for these tokens and would now work on preparing a bill.

“Under our regime, we have placed importance on strong reserve support and reliable repayments,” he said.

The MAS classifies stablecoins as “digital payment tokens” under the Payment Services Act. It introduced a framework in August 2023 for single currency stablecoins pegged to the Singapore dollar as well as major currencies such as the US dollar and the euro.

In his speech, the director warned that unregulated stablecoins have a “spotty track record” of maintaining their peg to the underlying asset. He also said that if this problem is not addressed, it could trigger systemic runs similar to the money market fund failures of 2008.

American stablecoins currently dominate the market

The effort to regulate stablecoins in Singapore comes after the United States established a regulatory framework for the tokens in July when President Trump signed the GENIUS Act. The move has since launched a global race for stablecoins and has also seen a growing number of traditional financial companies begin to explore stablecoins.

Currently, the market is dominated by stablecoins pegged to the US dollar. The largest of these tokens is Tether’s USDT, which has a market capitalization of over $184 billion. Second, Circle’s USDC, with its total capitalization of over $76 billion.

The rest of the ten largest stablecoins are all tokens linked to the greenback.

The largest stablecoins by market capitalization (Source: CoinMarketCap)

The largest non-USD stablecoin is Circle’s EURC, which has a much smaller capitalization than USDT, at over $298.7 million. After EURC, the second largest non-USD stablecoin is EURS with a market capitalization of over $139 million.

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