Singapore proposes full reserves and no-yield rules for stablecoin issuers

Singapore’s financial watchdog has proposed rules that would require stablecoin issuers to maintain reserves covering 100% of their tokens and prohibit them from offering yields. The framework is intended to strengthen requirements for stablecoin issuance in the country while aligning Singapore’s approach with regulatory frameworks in the United States and European Union, according to CoinDesk. The proposal also creates a path toward recognizing stablecoins issued in foreign jurisdictions. The measures remain proposals, and the supplied information does not specify when they could take effect or provide further details on eligibility, reserve assets or the process for recognizing overseas stablecoins. The announcement adds to the focus on reserve backing and issuer conduct as authorities develop rules for digital assets and payment-related tokens.