At the Singapore FinTech Festival 2025, Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun set out the regulator’s next phase of oversight for artificial intelligence (AI) and digital assets. His message was clear: the financial sector can innovate quickly, but “there needs to be governance and guardrails for safe adoption.”
Chia said MAS will continue to use a principles-based approach of regulating “in the right proportion, at the right time, to the right risk.” The focus is on enabling responsible AI use and building a tokenised future grounded in clarity, stability and interoperability.
Responsible AI Adoption Across the Financial Sector
AI use is accelerating across Singapore’s financial institutions, from fraud detection to underwriting and customer support. Chia said the regulator wants institutions “to adopt AI productively and safely,” and for the workforce “to have the skills to use AI.”
MAS is advancing its approach across four areas:
- Building AI skills and expertise in Singapore
- Expanding adoption across financial institutions
- Strengthening governance
- Upskilling talent for an AI-enabled workplace
More than 30 financial institutions have already established AI competency centres in Singapore, developing tools that support both local and global operations.
A key part of MAS’s regulatory direction is the new Guidelines on AI Risk Management, which outline expectations for identifying risks and applying controls across an AI model’s full life cycle. The guidelines are principles-based and flexible enough to evolve with technology while still setting clear guardrails.
Alongside this, the AI Risk Management Executive Handbook, developed through industry consortium Project MindForge, offers practical guidance for firms, with more detailed best practices planned for 2026. Chia said the guidelines and handbook “will work together,” combining regulatory expectations with dynamic industry insights.
MAS is also investing in shared platforms to help firms adopt AI more confidently. PathFin.ai curates trusted use cases and resources for institutions beginning their AI journey, while BuildFin.ai brings together researchers and technology providers to solve harder problems, such as building voice-to-text models that handle Singapore’s multilingual environment.
Laying the Foundation for a Tokenised Future
Chia said tokenisation “may be on the cusp of a take-off,” but scaling it safely requires three building blocks: standardised tokens and interoperable networks, reliable settlement assets, and institutional-grade infrastructure.
Under Project Guardian, MAS is working with international regulators and financial institutions to develop common standards for tokenising funds, bonds and foreign exchange. Chia encouraged a model of “co-opetition,” where firms compete in the market but cooperate on shared standards to avoid fragmentation.
MAS will soon publish a Guide on the Tokenisation of Capital Markets Products, offering case studies, regulatory treatment and disclosure expectations. The guide will be updated as markets evolve.
On stablecoins, Chia stressed that strong regulation is essential. MAS has finalised the features of Singapore’s stablecoin regime and will issue draft legislation covering reserve backing and redemption rights.
He also announced successful live trials of Singapore dollar wholesale CBDC for interbank lending, completed by DBS, OCBC and UOB – an important step in testing real-world settlement using tokenised assets.
To support global interoperability, MAS has launched the Global Layer One initiative, which provides shared principles and templates for building blockchain networks. A related Market Infrastructure Toolkit, developed with international partners, will help financial institutions assess whether networks meet standards such as the Principles for Financial Market Infrastructures (PFMI).
Collaboration as the Foundation
Chia closed by comparing AI to a fast-moving river and tokenisation to a canal system: both powerful, but both requiring structure and safety. He emphasised that the future of digital finance “cannot be built by a single party,” and depends on deep collaboration across the public and private sectors, both within Singapore and globally.
Wondering How the Changing AI Landscape Will Impact Your Firm?
If you’re exploring how evolving MAS guidance on AI, digital assets and market infrastructure will shape your compliance priorities, CUBE can help you stay ahead with clear, connected regulatory intelligence. Speak with our team to learn more about how RegPlatform™ supports confident decision-making in a fast-changing landscape.