MAS (Monetary Authority of Singapore)

The Monetary Authority of Singapore (MAS) is Singapore’s integrated financial regulator and central bank, responsible for both monetary policy and the regulation and supervision of financial institutions operating in Singapore. MAS combines functions that in many jurisdictions are separated between a central bank and a financial conduct authority, giving it a unified perspective on systemic stability, market conduct, and innovation. Its approach to digital assets has been among the most sophisticated and internationally influential of any regulator globally.

Integrated Regulator Structure

MAS was established by the Monetary Authority of Singapore Act 1970 and began operations in January 1971, consolidating monetary policy functions from the government and supervisory functions from several separate agencies. Today MAS supervises banks, insurance companies, capital markets intermediaries, and payment services providers, and it conducts Singapore dollar monetary policy including exchange rate management. The integrated structure facilitates coordinated responses to financial stability risks that cut across traditional regulatory boundaries — a feature of increasing relevance as crypto assets interact with banking, payments, and capital markets simultaneously.

Payment Services Act and DPT Licensing

The Payment Services Act (PSA) of 2019, significantly amended in 2022, is the primary legislation governing crypto asset service providers in Singapore. The PSA requires persons carrying on payment services — including Digital Payment Token (DPT) services — to be licensed by MAS. DPT services encompass buying, selling, or exchanging digital payment tokens for money or other DPTs, operating DPT exchanges, and providing custodial services for DPTs.

MAS has been notably selective in granting DPT licences. The regulator has stated explicitly that it generally does not consider it appropriate to issue DPT licences to platforms whose business is primarily oriented toward serving retail customers in offshore jurisdictions while using Singapore as a regulatory base. This policy stance reflects MAS’s concern that Singapore not become a haven for lightly regulated crypto businesses exporting services to consumers who lack equivalent protections. Major licence holders include institutional-focused platforms and Singapore-based operations with genuine local nexus.

Project Guardian: Institutional DeFi

Project Guardian is MAS’s flagship initiative for exploring institutional applications of DeFi and tokenized assets in regulated financial markets. Launched in 2022, the project operates through collaborative pilots between MAS and leading global financial institutions, with each pilot testing a specific use case under defined regulatory parameters.

Pilots under Project Guardian have involved HSBC and Wellsfargo testing tokenized deposits and cross-border payments, JPMorgan and SBI Digital Asset Holdings conducting intraday repurchase agreement transactions using tokenized government bonds, DBS Bank tokenizing and settling Singapore government securities on a public blockchain, Standard Chartered structuring tokenized trade finance assets, and Citi exploring tokenized private equity fund interests. MAS publishes detailed reports on each pilot cohort, documenting both the technical approaches and the regulatory considerations encountered, creating a public knowledge base for institutional tokenization.

Project Guardian’s institutional focus is deliberate: MAS has consistently emphasized that its priority is facilitating genuine financial market efficiency improvements through tokenization, not enabling speculative retail crypto trading. The project’s outputs include policy recommendations for regulatory frameworks governing tokenized asset markets, industry guidelines for prudent adoption of DeFi protocols, and technical standards for interoperable tokenized asset infrastructure.

Stablecoin Framework

MAS published its final stablecoin regulatory framework in August 2023, establishing requirements for single-currency stablecoins (SCS) pegged to the Singapore dollar or G10 currencies that are issued in Singapore. The framework imposes reserve asset requirements (high-quality liquid assets held 1:1 against issuance), capital adequacy requirements for issuers, redemption at par within five business days, and disclosure obligations to holders.

Stablecoin issuers that meet these requirements can apply for their stablecoins to be designated as MAS-regulated stablecoins, a designation intended to signal trust and reliability for institutional use cases. The framework distinguishes regulated stablecoins from general DPTs, applying stricter requirements to the former in recognition of their greater systemic potential.

DTSP Framework: June 2025

The Digital Token Service Provider (DTSP) framework, which became effective June 30, 2025, consolidated and updated MAS’s approach to digital token custody and transfer services. The framework brought custody of digital securities tokens within the Securities and Futures Act regime where they had not previously been explicitly covered, required DTSPs to maintain segregated client assets, implement robust cybersecurity standards, and maintain capital buffers proportionate to the value of assets under custody. The June 2025 effective date gave existing token service providers a defined transition period to comply with the new requirements or exit the market, resulting in a more concentrated and better-capitalized Singapore digital asset service provider landscape.