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MAS Pilots Tokenized Government Bonds Backed by Digital Singapore Dollar
15 Nov
Summary
- MAS to pilot tokenized government bonds settled using digital Singapore dollar
- Tokenization can make financial transactions faster and more efficient
- Three major Singaporean banks already using CBDC for overnight lending
On November 13, 2025, the Monetary Authority of Singapore (MAS) announced plans to pilot a new type of government bond: tokenized MAS bills. These bonds will be settled using a digital version of the Singaporean dollar, known as a central bank digital currency (CBDC).
During the Singapore FinTech Festival, MAS Managing Director Chia Der Jiun stated that tokenization is no longer just a lab experiment, but has matured enough for real-world applications. He explained that tokenized assets can make financial transactions faster and more efficient by removing intermediaries and better utilizing collateral. However, Chia acknowledged that major structural and operational issues still need to be addressed before the full potential of tokenized assets can be realized.
In the meantime, MAS shared that three major Singaporean banks—DBS, OCBC, and UOB—have already used the CBDC for overnight lending between banks. This experiment aligns with MAS's broader goal of building a financial system backed by trusted and regulated digital assets.
On the regulatory front, Chia revealed that MAS has finalized its framework for stablecoins and will soon begin drafting laws around it. The framework emphasizes sound reserve backing and redemption reliability. MAS also launched its BLOOM (Borderless, Liquid, Open, Online, Multi-currency) initiative to encourage companies to run trials using tokenized bank liabilities and regulated stablecoins.
