The city-state of Singapore is confirming its position as a pioneer in financial innovation: it will launch a pilot project for issuing tokenized government bills, settled in central bank digital currency (CBDC). A concrete step toward a digital, agile, and interconnected public finance system.
A major pilot initiative
During the Singapore FinTech Festival 2025, the Monetary Authority of Singapore (MAS), Singapore’s central bank and financial regulator, unveiled a pilot operation called “Tokenized MAS Bills.” These Treasury bills will be issued in digital form and settled using the digital Singapore dollar. This shift marks a turning point: the state is positioning itself not only as a regulator, but also as a builder of digital monetary networks.
Moving toward open and interoperable standards
The director of the Monetary Authority of Singapore emphasized the importance of avoiding a fragmented landscape in which each blockchain network would host tokens that are incompatible with one another. The objective is to create asset-backed tokens (bonds, funds, bank liabilities) that are recognized and tradable across multiple platforms. The “Global Layer One” project, launched in 2022, aims precisely to establish these open standards to ensure the smooth circulation of tokenized assets.
Three types of assets under review
The pilot relies on three types of underlying assets:
- Singapore’s CBDC itself, already used in certain interbank loans through banks such as DBS Bank, OCBC Bank, and United Overseas Bank.
- Regulated stablecoins, which have been governed since 2023 under a Singaporean legislative framework.
- Tokenized bank liabilities, which offer greater flexibility for the private sector.
Each of these options has its advantages – the legitimacy of a CBDC, the liquidity of stablecoins, and the flexibility of bank liabilities – but also its own challenges in terms of interoperability and governance.
What this means for the future of finance
With this project, Singapore is laying the groundwork for “programmable finance”: 24/7 settlement, fewer intermediaries, and enhanced traceability. This model could inspire other jurisdictions seeking to digitize their public financial instruments. However, the structural challenge remains significant: ensuring that innovation does not create closed, non-communicating systems, but instead promotes an open and standardized infrastructure.
Key takeaways
- The MAS is launching a test for issuing tokenized Treasury bills settled in CBDC.
- The project aims to establish open standards for tokenized assets.
- Three types of assets are being explored: CBDC, regulated stablecoins, and tokenized bank liabilities.
- Singapore is positioning itself as a global laboratory for public digital finance.
