Singapore Expands CBDC Experiments With Tokenized Securities Pilo

Singapore’s central bank is preparing to take a major step in its digital-asset roadmap, with plans to test tokenized versions of MAS bills that will be settled using a wholesale central bank digital currency.

The Monetary Authority of Singapore (MAS) expects to outline the specifics of the pilot program next year.

Speaking at the Singapore FinTech Festival, MAS Managing Director Chia Der Jiun said that tokenization is no longer an experimental concept and is already moving into mainstream financial applications. Still, he argued that the industry has not yet reached the point where tokenized assets can scale without friction.

Chia highlighted that tokenized financial instruments offer advantages like faster settlement, fewer middlemen, and improved collateral efficiency. However, he cautioned that barriers such as fragmented infrastructure and inconsistent standards remain obstacles to widespread adoption.

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.