Singapore Doubles Down on CBDC Future: Tokenized Securities Pilot Goes Live
Singapore just fired the next salvo in the global CBDC arms race—and Wall Street's legacy systems should be sweating.
The Monetary Authority of Singapore (MAS) is expanding its digital currency experiments with a live pilot for tokenized securities settlements. No more sandbox theories—this is real-world deployment.
Why it matters: While US regulators still debate stablecoin frameworks, Singapore's proving CBDCs can turbocharge capital markets. The pilot bridges central bank money with blockchain-based assets—potentially slashing settlement times from days to minutes.
The cynical take: Another 'innovation' that'll let banks repackage old products with blockchain buzzwords. But if it actually works? Watch traditional finance suddenly discover their passion for 'technological progress.'
Banks Test CBDC Settlement
Chia revealed that three of Singapore’s largest banks – DBS, OCBC, and UOB – have already completed overnight interbank lending transactions using a wholesale CBDC denominated in Singapore dollars. The trials are part of MAS’ broader effort to build a secure foundation for tokenized finance using central-bank-grade settlement assets.
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Stablecoin Rules Finalized
Turning to stablecoins, Chia confirmed that Singapore’s regulatory framework is complete and that draft legislation is on the way. MAS places particular emphasis on robust reserves and dependable redemption mechanisms. Under the Payment Services Act, stablecoins fall under the category of “digital payment tokens,” and the regulator has established standards for single-currency stablecoins tied to the Singapore dollar or major global currencies such as the U.S. dollar and euro.
Chia warned that stablecoins without strong regulation have a poor history of maintaining their pegs and could spark crises resembling the 2008 money market fund breakdowns, when several funds slipped below $1.
Supporting Industry Experiments
To support continued experimentation, MAS has launched the BLOOM initiative, which focuses on exploring tokenized bank liabilities and regulated stablecoins as settlement tools – a MOVE aimed at guiding the industry toward safer, more scalable forms of digital finance.
