Singapore’s MAS Launches BLOOM Initiative for Tokenized Asset Settlement
Singapore strengthens its position as a digital asset hub with a groundbreaking regulatory framework. The Monetary Authority of Singapore (MAS) announced the BLOOM initiative on October 16, 2025, designed to expand settlement capabilities through tokenized bank liabilities and regulated stablecoins. This strategic move addresses the growing demand for digital settlement assets while managing emerging risks through standardized approaches.
BLOOM stands for Borderless, Liquid, Open, Online, and Multi-currency. The initiative enables settlement in tokenized bank liabilities and well-regulated stablecoins while effectively managing risks in the rapidly evolving digital settlement asset landscape. Financial institutions can now leverage these assets for both domestic and cross-border transactions.
Building on Project Orchid’s Foundation for Digital Assets
BLOOM builds upon insights from Project Orchid, launched in 2021, which explored use cases for a digital Singapore dollar. The success of more than 10 trials provided MAS with valuable industry reports on practical applications. Financial institutions have since used these findings to develop market-ready solutions.
Kenneth Gay, MAS Chief FinTech Officer, explained that Project Orchid established the technical competencies necessary to support the digital Singapore dollar. BLOOM takes this further by enhancing the range of settlement asset options for participants. This complements ongoing MAS-industry collaboration on asset tokenization under Project Guardian.
Key Focus Areas of the BLOOM Initiative for Stablecoins
BLOOM caters to the growing interest among private sector participants in tokenized bank liabilities and well-regulated stablecoins as settlement assets. The initiative encompasses multiple currencies, including G10 and Asian currencies. This creates a more versatile ecosystem for global financial transactions.
BLOOM will focus on improving cross-border payments, enabling smoother transactions and settlement. Wholesale use cases include corporate treasury management, trade finance, and agentic payments. Agentic payments refer to financial transactions initiated and executed by AI agents on behalf of organizations.
Collaboration Between MAS and Major Financial Institutions
MAS plans to collaborate with major financial institutions like Circle, DBS, and Stripe to enhance settlement systems and automate compliance checks. These initial BLOOM members bring their collective expertise and global perspectives to the initiative. Additional financial institutions and clearing network operators can join through trial programs.
The company initially focuses on distributing and clearing settlement assets, aiming to coordinate across disparate networks. Members working on this include Circle, DBS, OCBC, Partior, Stripe, and UOB. The initiative also emphasizes programmable controls to enhance and automate compliance checks.
Standardized Mechanisms for Cross-Border Settlement Assets
The use of standardized mechanisms for compliance checks will enable more consistency in implementations and a lower cost of compliance. This approach will facilitate more cost-effective cross-border wholesale settlement arrangements. The initiative includes applying the Programmable Compliance Toolkit developed under the Global Layer One initiative.
Financial institutions can seamlessly use, transfer, and redeem different settlement assets. This interoperability represents a significant advancement in digital asset infrastructure. MAS welcomes banks and clearing network operators to conduct trials under BLOOM.
Singapore’s Leadership in Digital Asset Innovation and Tokenization
The launch of BLOOM is a key milestone for Singapore in its efforts to advance digital assets in the financial sector. The initiative provides the necessary infrastructure to support the growth of tokenized finance and stablecoin adoption. Singapore continues to demonstrate its commitment to responsible innovation in financial services.
Kenneth Gay added that BLOOM complements MAS’s ongoing initiatives, such as Project Guardian and Global Layer One, by helping financial institutions improve their digital asset capabilities. This comprehensive approach fosters financial innovation while maintaining robust regulatory oversight. The framework positions Singapore ahead of many global competitors in digital asset regulation.
The initiative arrives at a pivotal moment for digital asset adoption. Institutions worldwide are exploring tokenized solutions for traditional financial services. Singapore’s proactive regulatory stance creates opportunities for local and international financial players.
Conclusion
BLOOM represents more than a regulatory update. It signals Singapore’s commitment to building foundational infrastructure for the next generation of financial services. The collaboration between regulators and industry leaders demonstrates a balanced approach to innovation and risk management.
