MAS’s BLOOM Initiative Aims To Expand Safe Stablecoin Use In Payments

October 20, 2025
Back
Singapore’s pragmatic yet forward-looking stance on stablecoins encourages innovation in payments, but only when supported by robust regulation and strong consumer protection.

Singapore’s pragmatic yet forward-looking stance on stablecoins encourages innovation in payments, but only when supported by robust regulation and strong consumer protection.

The Monetary Authority of Singapore (MAS) has launched a new initiative, BLOOM – short for Borderless, Liquid, Open, Online, Multi-currency – to extend settlement capabilities offered by financial institutions and strengthen Singapore’s position in the evolving digital asset ecosystem.

BLOOM will see the regulator collaborating with the financial services industry to enable settlement via tokenised bank liabilities and regulated stablecoins, while mitigating associated risks through standardised approaches.

Building on Project Orchid

BLOOM builds on Project Orchid, an exploratory MAS initiative launched in 2021 to investigate potential use cases for a digital Singapore dollar and its supporting infrastructure.

Project Orchid completed more than ten successful trials, producing detailed industry reports and practical applications. Participating financial institutions have since developed commercial solutions inspired by these findings.

The BLOOM initiative reflects growing industry interest in digital settlement assets such as tokenised deposits and regulated stablecoins and demonstrates MAS’s commitment to innovation. 

It will support multiple G10 and Asian currencies, covering both domestic and cross-border payment scenarios. Initially, the initiative will target wholesale use cases, including corporate treasury management, trade finance and emerging agentic payments (AI-driven automated transactions).

Industry collaboration

BLOOM brings together a diverse group of financial institutions and technology firms to explore new models for digital settlement. 

Initial focus areas include:

  • Distribution and clearing of settlement assets, coordinating disparate payment networks to enable seamless use, transfer and redemption of settlement assets. Participants include Circle, DBS, OCBC, Partior, Stripe and UOB.
  • Programmable compliance controls, deploying standardised mechanisms to automate checks, reduce complexity and lower costs for cross-border transactions. Led by Ant International and StraitsX.
  • Agentic payments, leveraging AI to execute transactions automatically within defined parameters, reducing manual processing and optimising timing. Participants include Coinbase and DBS.

MAS has said that it welcomes further participation from banks, financial institutions and clearing and settlement operators interested in conducting BLOOM-related trials.

Public education and regulatory safeguards

In a related parliamentary reply on October 15, 2025, deputy prime minister and MAS chair Gan Kim Yong re-affirmed the importance of educating the public on the risks and benefits of stablecoins.

He noted that MoneySense, Singapore’s national financial education programme, will enhance efforts to inform consumers about stablecoins, including how to distinguish between regulated and unregulated products.

MAS is also preparing legislation to introduce a stablecoin regulatory framework distinguishing MAS-regulated, fully backed stablecoins from unregulated crypto-assets lacking inherent value.

Gan emphasised that although well-regulated stablecoins could improve cross-border payments and support wholesale settlement of tokenised assets, consumers should exercise caution. 

“Stablecoins in general are not as safe as bank deposits in Singapore, as bank deposits are tightly regulated and protected by deposit insurance,” he said.

MAS’s current assessment is that the growing use of Singapore dollar-backed stablecoins is unlikely to affect monetary policy or currency stability, as each token would be fully backed by Singapore dollar-denominated assets. 

However, the authority will continue to monitor developments closely.

Opportunities blossom

MAS’s announcement of BLOOM and the related parliamentary reply underline Singapore’s pragmatic yet relatively progressive stance on stablecoins and their use in payments.

It has moved ahead of other regulators on the possible use cases for stablecoins, with jurisdictions such as the UK, the EU and the US seemingly waiting for the market to identify them. 

MAS recognises the potential of well-regulated stablecoins as part of the next phase of financial innovation, distinguishing them from unregulated crypto-assets.

However, it is cautious and supports only those backed by high-quality, liquid assets such as cash or government securities, which it feels certifies them as legitimate financial tools for settlement and cross-border payments rather than speculative investments.

Consumer protection remains central: the MoneySense programme will educate the public on the risks of unregulated stablecoins, emphasising that stablecoins are not as safe as bank deposits and should not be treated as savings products..

BLOOM builds on this framework to promote institutional adoption. By including stablecoins alongside tokenised bank liabilities, MAS has signalled its intent to develop an interoperable settlement ecosystem that complements traditional banking infrastructure. 

With industry partners such as DBS, UOB, OCBC, Coinbase and Circle, BLOOM offers a controlled environment for testing applications in trade finance, treasury management, and programmable payments. In addition, the initiative’s multi-currency scope, covering G10 and Asian currencies, positions Singapore as a regional hub for digital settlement. 

Ultimately, innovation is encouraged, but only with robust regulatory backing. 

Our premium content is available to users of our services.

To view articles, please Log-in to your account. Alternatively, if you would like to gain access to the tools that will help you navigate compliance risk with confidence please get in touch today.

Opt in to hear about webinars, events, industry and product news

Still can’t find what you’re looking for?
Get in touch to speak to a member of our team, and we’ll do our best to answer.
Contact us
No items found.
No items found.