Singapore Tightens New Stablecoin Rules: 100% Backing, Ban on Interest - CryptoRank

Singapore has introduced stricter rules for stablecoin issuers, requiring that all tokens be fully backed by a 100% reserve and banning the payment of interest to holders. The move is designed to reinforce the credibility of stablecoins as a reliable medium of exchange rather than a speculative or yield-bearing asset.

Full backing means that for every stablecoin in circulation, an equivalent amount of high-quality, liquid assets must be held in reserve. This reduces the risk of a de-pegging event, where a token’s value diverges from its underlying fiat currency. The interest ban likewise clarifies that stablecoins are meant for payments and settlement, not as a proxy for a savings account or money market fund.

For the broader market, these rules raise the compliance bar for issuers seeking access to Singapore’s regulated ecosystem. While higher costs may deter smaller players, stronger transparency and reserve requirements could boost institutional confidence. The policy may also serve as a template for other jurisdictions weighing similar safeguards, signaling a global trend toward stricter oversight of digital assets.