Regulators are moving to separate settlement-grade instruments from the rest of the market. The message was blunt and aimed squarely at issuers that operate without strict oversight.
His remarks came in a keynote at the Singapore FinTech Festival and make clear that the city-state intends to favor well-capitalized, closely supervised issuers for settlement uses.
Over time, Chia said, if certain stablecoins grow big enough to affect the wider system, rules will need tightening and cross-border cooperation will be required. Access to central bank facilities was mentioned as a possible future step for truly systemic tokens.
Monthly stablecoin payments have topped $10 billion as of August 2025, with 63% of that volume tied to B2B activity. These numbers show why regulators are paying attention.
They also help explain why USDT and USDC remain dominant players as use moves beyond trading into payments and business flows. Bitcoin’s rise above $120,000 has also been cited as one factor increasing overall market activity.
Chia also outlined MAS’s broader view of settlement assets, mentioning wholesale central bank digital currency and tokenized bank liabilities.
Financial firms and clearing networks were urged to run trials under the initiative so practical issues can be spotted early.
Featured image from Unsplash, chart from TradingView
