The Monetary Authority of Singapore (MAS) plans to pilot the issuance of tokenized MAS bills that will be settled using central bank digital currency (CBDC). Key Takeaways: MAS will pilot tokenized government bills settled with a CBDC. The move marks a major step toward integrating blockchain-based assets into Singapore’s financial system. DBS, OCBC, and UOB have tested interbank lending using the Singapore dollar wholesale CBDC, signaling growing real-world adoption of tokenized finance. Speaking at the Singapore FinTech Festival on Thursday , MAS Managing Director Chia Der Jiun said tokenization has evolved beyond the experimental phase and is now seeing real-world use. “Are asset-backed tokens clearly out of the lab? Without a doubt,” Chia said. “But have asset-backed tokens achieved escape velocity? Not yet.” Singapore Banks Trial Interbank Lending With CBDC Chia explained that while tokenized assets can enable instant settlement, reduce intermediaries, and optimize collateral usage, the broader ecosystem still faces significant operational and structural challenges before mass adoption can occur. As part of its ongoing experimentation, MAS revealed that three of Singapore’s largest banks, including DBS, OCBC, and UOB, have conducted interbank overnight lending transactions using the Singapore dollar wholesale CBDC. The move aligns with the regulator’s goal of scaling tokenized finance built on reliable, regulated settlement assets. Details of the trial will be unveiled next year. On the regulatory front, Chia noted that MAS has completed its stablecoin framework and will soon draft legislation. Philippines: $180M tokenized bonds Hong Kong: $765M on blockchain Governments that banned crypto are now issuing their debt as tokens. Cut out banks. Save millions. Instant settlement. The state became the biggest crypto user while you argued about memecoins. pic.twitter.com/Xe2wVwldqg — Tan Gera, CFA (@juniortgr) November 7, 2025 The framework, introduced in August 2023, applies to single-currency stablecoins pegged to the Singapore dollar or major global currencies such as the US dollar and euro. “Under our regime, we have given importance to sound reserve backing and redemption reliability,” he said, emphasizing that unregulated stablecoins have shown a “patchy record” in maintaining their pegs and could cause systemic stress similar to the 2008 money market crisis. MAS has also launched the BLOOM initiative to encourage industry trials involving tokenized bank liabilities and regulated stablecoins, reinforcing Singapore’s ambition to lead in safe and scalable tokenized finance. Coinbase Business Launches in Singapore As reported, Coinbase has expanded its reach beyond the United States with the official launch of Coinbase Business in Singapore, marking its first international rollout of the crypto operating platform. The move allows Singaporean startups and small-to-medium businesses (SMBs) to access instant USDC payments, global payouts, integrated trading tools, and automated accounting. However, Bitget and Bybit are preparing to reduce their presence in Singapore after the country’s central bank issued a final directive requiring unlicensed crypto firms to halt overseas operations. In early June, the regulator mandated that all digital token service providers not yet approved under the Payment Services Act must stop serving international clients—regardless of their licensing status. The MAS order targets firms with offshore clientele or front-office teams based in Singapore and leaves little room for exceptions. Bitget has already begun relocating staff to crypto-friendly jurisdictions like Dubai and Hong Kong, where regulatory frameworks are more accommodating. Bybit is also reportedly considering similar moves but has not officially announced its relocation strategy. Dubai and Hong Kong have emerged as leading alternatives for digital asset firms amid rising regulatory pressure in other markets. Dubai’s Virtual Asset Regulatory Authority has issued licenses to over 20 firms, including Binance and Bybit, offering tax benefits and legal clarity. The post Singapore’s Central Bank to Test Tokenized Bills With CBDC Settlement appeared first on Cryptonews .
