Singapore's Central Bank to Trial Tokenized Bills, Introduce Stablecoin Laws

Core Insights - The Monetary Authority of Singapore (MAS) is initiating a trial for tokenized bills settled with wholesale central bank digital currency (CBDC) to further integrate blockchain-based finance into the economy [1] - MAS is also drafting legislation for a stablecoin regulatory framework, emphasizing the need for robust and safe settlement assets for global tokenized transactions [2][4] Tokenization and CBDC - Tokenization involves representing real-world assets (RWAs) like bonds or equities as digital tokens on blockchains, which can enhance transaction efficiency [2] - Tokenized bank liabilities are expected to benefit from existing regulatory requirements that ensure value stability, with plans to trial tokenized government debt backed by wholesale CBDC [3] Regulatory Framework - MAS views wholesale CBDC as a foundational element for a system utilizing private settlement assets to meet various market demands [4] - The draft stablecoin regulatory regime will focus on sound reserve backing and reliable redemption, especially if regulated stablecoins become systemic [4] Project Guardian - MAS is leading Project Guardian, initiated in 2022, to explore tokenization use cases in foreign exchange and fixed income, aiming for near-instant settlement with fewer intermediaries [5]