Singapore positions itself to lead in responsible AI adoption, interoperable digital assets, and institutional-grade blockchain networks
SINGAPORE, November 13, 2025 — The Monetary Authority of Singapore (MAS) has set out a forward-looking roadmap that will guide the next decade of financial innovation, placing responsible artificial intelligence (AI) and tokenised financial infrastructure at the core of Singapore’s strategy to remain a leading global financial hub.
Speaking at the 10th edition of the Singapore FinTech Festival (SFF), MAS Managing Director Chia Der Jiun outlined how Singapore intends to steer the rapid advancement of AI and blockchain technologies while safeguarding stability, trust and interoperability across financial markets.
The festival’s scale — with 65,000 attendees and 600 exhibitors — reflects both global interest and Singapore’s increasing influence as a centre for financial innovation.
AI to Transform Financial Services — With Guardrails
Chia emphasised that AI has already become deeply embedded across the financial sector, from customer service and market analytics to fraud detection, underwriting and automated workflows. But he cautioned that the next phase — involving autonomous AI agents capable of end-to-end decision-making — requires strong safeguards. “Agentic autonomy must come with sufficient guardrails,” he said.
MAS’ AI strategy is built on four key pillars.
1. Anchoring leading AI capabilities in Singapore
More than 30 financial institutions have already established AI competency centres locally. To further accelerate sector-wide innovation, MAS launched BuildFin.ai, a new initiative bringing together financial institutions, research institutes and technology providers to tackle shared challenges. Its first project will see A*STAR and several banks co-develop a multilingual voice-to-text AI model tailored for Singapore’s linguistic diversity — including Singlish.
2. Broadening AI adoption across the industry
The PathFin.ai platform, launched earlier this year, has grown from 20 to more than 100 participating financial institutions. It curates validated AI use cases, deployment guides and best practices, helping institutions — especially smaller ones — adopt AI efficiently and safely.
3. Enhancing AI governance and regulatory clarity
MAS has released its Guidelines on AI Risk Management for public consultation. The principles-based framework sets expectations for identifying and managing risks across the AI lifecycle. To complement regulatory guidance, the industry-led AI Risk Management Executive Handbook provides practical examples and good practices.
4. Upskilling an AI-ready workforce
A new GenAI Jobs Transformation Map outlines how financial roles will evolve with AI adoption. MAS and the Institute of Banking and Finance are partnering institutions to equip staff with the necessary skills. “We want our finance professionals to have the skills to make effective use of AI and manage the risks,” Chia said.
Tokenisation Moves Beyond Pilots — But Scaling Requires Interoperability
The second major pillar of MAS’ vision is the development of a tokenised financial system, built on what Chia termed “asset-backed tokens.” Since launching Project Guardian in 2022, MAS and industry partners have proven real-world use cases across FX, funds and fixed income — demonstrating benefits such as:
- near-instant 24/7 settlement
- programmability enabling automated contractual processes
- reduced pre-funding requirements and intermediaries
- lower processing costs and settlement risks
Commercial adoption is growing, with tokenised money market funds, on-chain bond issuances and tokenised liquidity solutions now available. But Chia cautioned that full-scale adoption requires further progress.
He highlighted three critical building blocks.
1. Standardised tokens and interoperable networks
Chia warned against a future of fragmented, non-interoperable blockchain networks operating as “walled gardens.” Under Project Guardian and the Global Layer One (GL1) initiative, MAS is working with global policymakers and financial institutions to establish:
- common tokenisation standards
- interoperability templates
- shared principles for network design
A newly launched GL1 Market Infrastructure Toolkit, containing 108 controls aligned with global regulatory principles, will help participants evaluate whether networks meet institutional standards.
2. A deep pool of safe and reliable settlement assets
MAS is exploring three settlement asset types:
- tokenised bank liabilities
- regulated stablecoins
- wholesale CBDCs
Singapore has finalised the features of its upcoming Stablecoin Regulatory Regime, focusing on strong reserve backing and reliable redemption. Chia announced that DBS, OCBC and UOB have successfully conducted interbank overnight lending using wholesale CBDC — a regional first. MAS will next trial tokenised MAS Bills settled with CBDC.
3. Institutional-grade blockchain networks
Chia noted that tokenised transactions require networks capable of delivering:
- clear governance structures
- predictable fees
- privacy options
- regulatory compliance
- settlement finality
MAS will soon publish a Guide on Tokenisation of Capital Markets Products, providing greater clarity on regulatory treatment and disclosure requirements.
A Future Built on Collaboration
Chia closed with a call for international cooperation, likening tokenisation to China’s Grand Canal — a system of interconnected channels enabling efficient commerce. “This tokenised future cannot be built by a single party,” he said. “It will require collaboration between private and public sectors, within and across jurisdictions.”
With its emphasis on interoperability, responsible AI, and institutional-grade digital infrastructure, Singapore is positioning itself to play a defining role in the next chapter of global finance.
Photo Credit: Singapore Fintech Festival, 2025