The Monetary Authority of Singapore (MAS) has set out a framework for building trusted digital finance systems centred on tokenised assets, digital money and interoperable financial infrastructure. Speaking at the INSEAD Digital Finance & Agentic AI Summit on 9 October 2026, MAS Managing Director Chia Der Jiun said the next phase of digital finance depends less on technological experimentation and more on legal certainty, trusted settlement mechanisms and shared standards that can support commercial adoption at scale.
In his keynote address, Chia said digital assets, programmable money and distributed financial infrastructure are reshaping financial markets. However, he emphasised that innovation must be supported by clear regulation, interoperable systems and public-private collaboration to ensure stability and confidence.
Tokenisation moves towards commercial adoption
MAS said the tokenisation of assets has progressed beyond proof-of-concept testing, with increasing attention now focused on scaling practical use cases. Through Project Guardian, MAS and industry participants have examined tokenisation across multiple asset classes and developed standards covering asset servicing, interoperability, disclosure and risk management.
According to Chia, tokenised markets will require coordinated participation across financial institutions, infrastructure providers and counterparties to achieve meaningful scale. He noted that tokenised transactions in areas such as repo markets could improve coordination between securities transfers, collateral valuation and settlement processes, provided participants operate on compatible systems.
MAS has also issued guidance clarifying how existing securities regulations apply to tokenised capital market products. The regulator stated that activities involving equivalent economic risks should remain subject to the same regulatory outcomes regardless of the technology used.
Digital money requires trusted settlement mechanisms
The speech highlighted the role of digital money in supporting tokenised transactions. MAS said transactions can only scale if settlement assets provide certainty, stability and broad acceptance.
Chia said multiple forms of digital money are likely to coexist, including tokenised bank deposits, regulated stablecoins and central bank digital currencies (CBDCs). Each could serve different functions across banking, payments and financial markets.
MAS is advancing this work through BLOOM, a platform focused on settlement arrangements for digital money in domestic and cross-border applications. The authority said these systems must continue to meet safeguards expected of regulated financial activity.
The regulator also outlined its position on stablecoins, noting that confidence in privately issued digital money depends heavily on reserve transparency and value stability. MAS has consulted on amendments linked to its Single-Currency Stablecoin framework, including safeguards covering reserve backing, redemption rights, disclosure obligations and capital requirements.
MAS confirmed that a wholesale Singapore dollar CBDC was made available through the Singapore dollar Test Network in 2025. The authority is now preparing to settle tokenised MAS Bills using wholesale CBDC infrastructure to support settlement finality on shared digital networks.
The development aligns with wider national efforts to modernise financial infrastructure, including initiatives linked to future-proof national payment systems.
Interoperability seen as critical for digital markets
MAS said the future digital financial ecosystem is unlikely to rely on a single global ledger. Instead, Chia described a “network of networks” in which multiple distributed ledger systems interact across jurisdictions and institutions.
To avoid fragmented liquidity and duplicated infrastructure, MAS and industry partners are developing common standards to support interoperability and regulatory compliance across different platforms. This work is being advanced through Global Layer One (GL1), an industry collaboration platform focused on institutional-grade digital infrastructure.
GL1 has released tools including a Market Infrastructure Toolkit and a Programmable Compliance Toolkit, designed to help participants assess governance, resilience and regulatory controls across digital financial networks.
MAS examines safeguards for agentic finance
Beyond tokenisation, MAS also addressed the emerging role of AI agents in financial services. Chia said AI systems may increasingly act on behalf of individuals and organisations to analyse information and execute transactions.
MAS warned that wider adoption of agentic finance could affect liquidity management, collateral movements and institutional risk controls. The authority said financial institutions will need mechanisms to ensure AI agents operate within authorised mandates, governance frameworks and regulatory requirements.
Earlier this year, MAS and industry participants released the SAFR white paper, which proposes governance measures covering agent identity, authorisation checks and auditability. The work complements Singapore’s broader initiatives on AI governance in the financial sector and efforts aimed at strengthening secure foundations for AI at scale.
Concluding the speech, Chia said the long-term success of digital finance will depend on practical use cases, trusted forms of digital money and interoperable infrastructure supported by common standards. He added that MAS will continue working through public-private partnerships to support these developments.
This article is created with the assistance of OpenGov AI.