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Singapore is doubling down on tokenized finance through a series of pilots in which its pending stablecoin draft legislation will play a supporting role. The Monetary Authority of Singapore (MAS) is eager to build an institution-led digital finance ecosystem that distances itself from the volatility of the crypto market. It is preparing to issue tokenized government bills settled in wholesale CBDC next year in a move MAS said could help its digital market reach “lift off” after years of experimenting with tokenization. Dr Cheryl Wang from the Global Fintech Institute said Singapore is deliberately shifting its narrative away from its early open-door approach. “Singapore is attracting large financial institutions and serious Web3 and cryptocurrency firms, but not the smaller, highly speculative retail trading platforms it once did,” she said. “The ‘everyone-can-try-crypto’ era in Singapore has ended.” The scars from crypto collapses Singapore has been jolted by a string of global crypto-related failures, which have reshaped its regulatory position. Singapore’s sovereign wealth fund, Temasek Holdings, suffered a $275 million loss in 2022 after the collapse of FTX, which was a blow to the city’s efforts to cultivate a regulated crypto hub. The damage coincided with the failure of Singapore-based crypto hedge fund Three Arrows Capital (3AC), which invested in Luna tokens before its crash the same year. The hedge fund lost roughly $8 billion in client assets and deepened scrutiny of the sector. In 2022, then-managing director of MAS Ravi Menon labelled cryptocurrency “highly hazardous” and emphasized that MAS does not want Singapore to be a speculative crypto hub. Dr Wang said Singapore is now recasting itself as a steward of the industry. “In the last five years, Singapore has moved away from being an important stop for crypto testing. It now focuses on back-end systems, common rules, infrastructure, and building…

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Filed under: News - @ November 27, 2025 6:20 am