Singapore proposes full reserves and yield ban for stablecoin issuers

Singapore's financial regulator has put forward new rules requiring stablecoin issuers to hold 100% reserves against their issued tokens. The proposed framework also prohibits issuers from offering yields to holders. Authorities say the rules are designed to align with regulatory approaches already adopted in the United States and the European Union. The proposal additionally creates a pathway for foreign-issued stablecoins to receive official recognition in Singapore.