When you think about financial innovation, Singapore is never far away. The country which had already made an impression by hosting the global event TOKEN2019 continues to make great strides. In the crypto universe, the city-state is increasingly establishing itself as an open-air laboratory. Latest movement to date: the issuance of Treasury bonds… in a tokenized version. Government securities settled in central bank digital currency (CBDC). A transition which could well reshuffle the cards of state finance.
In brief
- Singapore will test tokenized MAS Bills, settled with its own CBDC.
- MAS wants to avoid closed ecosystems by imposing open and compatible standards.
- Three types of assets tested for settlement: CBDC, regulated stablecoins and tokenized bank liabilities.
- The MAS is pushing for programmable, secure, interoperable finance that is favorable to crypto players.
Tokenized vouchers and CBDC: experimentation becomes reality
After TOKEN2049, Singapore is reaching a new milestone. During the Singapore FinTech Festival 2025, Chia Der Jiun, director of MAS, unveiled a pilot operation: the issuance of tokenized MAS Bills, reserved for primary dealers, and settled in digital Singapore dollars. A paradigm shift? No doubt. Especially when we hear the boss of the MAS declares :
Are asset-backed tokens clearly out of the lab? Without a doubt. Many commercial products have been launched. Bonds were natively issued and settled on-chain. Monetary funds have been tokenized.
MAS does not stop there: banks DBS, OCBC and UOB have already carried out interbank lending operations in CBDC. These initiatives confirm an assumed ambition: that of imposing public finance in the crypto ecosystem, with secure, traceable and agile digital tools. A role-playing game where States are no longer simple regulators, but also builders of monetary networks.
Open standards and regulation: Singapore charts the crypto path
The real challenge is no longer technical, it is structural. In his speech, Chia Der Jiun mentions a major risk: that of a fragmented ecosystem, made up of incompatible networks and tokens not recognized from one platform to another. The solution? A “co-opetition” approach.
They must agree on common standards for asset-backed tokens, even as they seek to expand. A bond or fund token must be understood and accepted on a network other than the original one.
Chia Der Jiun
The Guardian project, already initiated in 2022, and the Global Layer One initiative, aim to create these standards. Their mission: to ensure that any asset tokenized on network A can be recognized and exchanged on network B. This is not just a step forward for crypto traders, it is an overhaul of the market itself.
The regulator wants to avoid the birth of closed monopolies or walled gardens. It supports open finance, driven by regulation but nourished by innovation. A hybrid model that could catch on well beyond Asia.
Stablecoins, CBDC, tokenized liabilities: shock trio for crypto
Behind the launch of these tokenized vouchers, another battle rages: that of the choice of settlement assets. The Singaporean digital dollar, stablecoins and even tokenized banking liabilities are being tested to serve as bases for dematerialized exchanges.
Key benchmarks to understand the issues:
- CBDC: used in first interbank loans via DBS, OCBC, UOB;
- Regulated stablecoins: regulated from 2023 by a strict legislative framework in Singapore;
- Tokenized banking liabilities: tested via the BLOOM initiative for their agility;
- Interoperability: at the heart of the Global Layer One project to avoid fragmentation;
- Operational objective: 24/7 settlement, reduction of intermediaries, increased efficiency.
Each of these models has its advantages. MNBCs offer security and legitimacy. Regulated stablecoins allow more flexible circulation. And bank liabilities provide the flexibility of the private sector, provided they are interoperable. This plurality of approaches clearly reflects one thing: no one yet holds the key to universal programmable money. But Singapore is moving forward, and fast.
Singapore is only confirming a trend that has been underway for several years. Like the Banque de France and that of Switzerland, its central bank has already successfully tested wholesale MNBCs. By reaching this new level, it contributes to weaving the contours of programmable, fluid finance, but under close surveillance. A complex score, where each note played already resonates well beyond its borders.
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