Singapore to Pilot Tokenized MAS Bills Settled with Central Bank Digital Currency in 2026 to Modernise Capital Markets

Singapore To Pilot Tokenized MAS Bills Settled With Central Bank Digital Currency

Singapore is preparing to issue tokenized MAS bills to primary dealers in 2026, with settlements processed through a central bank digital currency (CBDC), signalling a deeper move towards digital finance and blockchain-based capital markets.

The pilot will run on the Singapore Dollar Test Network and involves primary dealers, the financial institutions authorised to transact directly with MAS in issuing and redeeming government securities.

Can Tokenization Transform Traditional Finance

The trial will leverage a wholesale CBDC to settle tokenized bills on a shared ledger, allowing clearing and settlement to occur simultaneously.

This builds on MAS’s earlier trials using a wholesale CBDC for interbank overnight lending, moving the central bank closer to full-scale digital settlement.

By integrating settlement onto a single ledger, the pilot aims to cut settlement risk, speed up transactions, and reduce reliance on multiple intermediaries.

MAS notes that with a credit-risk-free settlement asset, transactions can complete nearly instantly while adhering to compliance and oversight standards.

Project Guardian Extends Singapore’s Tokenization Ambitions

The initiative forms part of Project Guardian, MAS’s long-running collaboration with financial institutions exploring asset tokenization and programmable digital money.

Tokenizing short-term instruments like MAS bills could become the foundation for a wider ecosystem of tokenized assets, improving liquidity management and operational efficiency for institutional investors.

Project Guardian has also expanded internationally, testing interoperability with regulators in Japan, the U.K., and Switzerland to connect digital assets with traditional banking systems.

Industry Adoption Still Faces Challenges

MAS Managing Director Chia Der Jiun, speaking at the Singapore FinTech Festival, acknowledged that tokenization has moved beyond experimental stages but has not yet reached “escape velocity.”

He said:

“Are asset-backed tokens clearly out of the lab? Without a doubt. But have asset-backed tokens achieved escape velocity? Not yet.”

Chia highlighted the potential benefits of tokenization, including round-the-clock settlement, fewer intermediaries, and more efficient collateral use, while noting structural hurdles remain for large-scale adoption.

Stablecoin Regulations Are Key To Digital Finance

Chia also addressed stablecoins, noting that MAS has finalised its regulatory framework and plans draft legislation.

Single-currency stablecoins pegged to the Singapore dollar or major currencies like the U.S. dollar and euro now fall under MAS’s classification of “digital payment tokens” via the Payment Services Act.

He cautioned:

“Unregulated stablecoins have a patchy record of keeping their pegs and could trigger systemic runs similar to 2008 money market fund failures, when funds broke the buck.”

Experimental Trials Are Expanding

Three Singapore banks — DBS, OCBC, and UOB — have already used the Singapore dollar wholesale CBDC for interbank overnight lending transactions.

In addition, MAS has launched the BLOOM initiative to support industry experimentation with tokenized bank liabilities and regulated stablecoins for settlement, further encouraging innovation while maintaining financial safety.

This pilot represents a step toward a more liquid, efficient, and integrated digital financial ecosystem, connecting tokenized assets, central bank money, and traditional finance in Singapore.