Singapore Moves To Ban Stablecoin Yield

Singapore Moves To Ban Stablecoin Yield

Tue, September 1, 2026 at 4:59 PM GMT+3 2 min read

Singapore's financial regulator has proposed regulatory changes that will ban stablecoins from paying yield to investors.

The Monetary Authority of Singapore is proposing to amend the "Payment Services Act" to effectively bar stablecoin issuers from paying any yield.

Stablecoins are cryptocurrencies whose value is pegged to an underlying asset, typically the U.S. dollar.

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The new rules would require issuers to maintain assets equal to at least 100% of all tokens in circulation at all times, and in accounts separate from issuers' own funds.

The regulator states in a consultation paper that stablecoins should be used for payments, not by the public as investment products or to generate yield similar to interest earned on a bank savings account.

The new rules would completely ban stablecoin issuers from paying interest or other benefits tied to customers' stablecoin holdings.

Singapore's approach aligns with other jurisdictions. The U.S. GENIUS Act and the European Union's Markets in Crypto-Assets (MiCA) regulation also ban stablecoins from paying interest or yield to investors.

Banks such as JPMorgan Chase (NYSE: $JPM) have lobbied against allowing stablecoins to provide yield, arguing that it will compete with and hurt their retail banking businesses.

Singapore's current consultation period is set to close on Oct. 16 of this year. No implementation date for the proposed new rules and stablecoin yield ban have been set.

The world's two main stablecoins are Tether's USDT (CRYPTO: $USDT) and Circle Internet Group's (NYSE: $CRCL) USDC (CRYPTO: $USDC).

CRCL stock has declined 25% over the last 12 months to trade at $90.06 U.S. per share.