Stablecoin News – On July 12, 2025, Singapore’s Monetary Authority (MAS) granted a stablecoin license to DBS Bank, one of Southeast Asia’s largest financial institutions, to issue an SGD-pegged stablecoin.
The stablecoin, backed 1:1 by Singapore dollar reserves held in segregated accounts, aims to enhance cross-border payment efficiency and support Singapore’s role as a global financial hub.
This move aligns with the city-state’s progressive digital asset strategy, following the success of Hong Kong’s Stablecoin Ordinance, which spurred $1.2 billion in issuance.
The DBS stablecoin targets institutional and retail use cases, including trade finance and remittances, which account for $130 billion annually in Southeast Asia, per the Atlantic Council.
By leveraging blockchain technology, the stablecoin reduces transaction costs from 6.6% to under 0.1%, offering a competitive alternative to traditional systems like SWIFT.
The MAS’s rigorous licensing process, requiring monthly audits and AML/KYC compliance, ensures stability, drawing on lessons from the EU’s MiCA framework and the U.S.’s GENIUS Act debates.
Singapore’s stablecoin ecosystem is growing, with firms like Ant International securing licenses to integrate stablecoins into payment platforms like Alipay.
The DBS initiative competes with Tether’s USDT ($158 billion market cap) and Circle’s USDC ($61 billion), which dominate 90% of the $253 billion stablecoin market.
However, the SGD peg offers a regional alternative, supporting ASEAN trade with countries like Malaysia and Thailand.
The BIS’s June 24 report warned of stablecoin risks, such as monetary policy disruption, but Singapore’s regulatory oversight mitigates these concerns.
Challenges include global regulatory fragmentation and competition from Hong Kong, where JD.com and Ant Group are preparing yuan-backed stablecoin applications.
DBS’s stablecoin could strengthen Singapore’s position in digital finance, but success depends on interoperability with regional blockchains like Solana and sustained institutional adoption. The launch underscores Southeast Asia’s embrace of stablecoins as economic tools, with Singapore leading the charge.
