Singapore has brought Malaysia and Thailand into its BLOOM initiative, bringing three Southeast Asian central banks together to develop common approaches for cross-border transactions involving regulated stablecoins and tokenized bank deposits.
Summary
- Malaysia and Thailand’s central banks have joined Singapore’s BLOOM initiative to coordinate cross-border digital money settlement.
- Ripple, Mastercard, Maybank and other major payment companies have joined the expanded initiative.
- The project covers regulated stablecoins, tokenized deposits, interoperability and programmable compliance controls.
- Malaysia is testing ringgit stablecoins, while Thailand is consulting on rules for baht-backed stablecoin issuers.
- Ripple’s RLUSD and Circle’s USDC could benefit from compatible settlement frameworks, but no regional approval was announced.
According to the Monetary Authority of Singapore’s October 23 announcement, Bank Negara Malaysia and the Bank of Thailand have joined the program as policymaker members. The collaboration will address how different forms of digital money can be accepted, exchanged and settled between financial institutions operating under separate national rules.
Three central banks expand BLOOM stablecoin settlement work
BLOOM, short for Borderless, Liquid, Open, Online, Multi-currency, brings regulators, banks and payment companies together to develop settlement arrangements for digital money. Its latest expansion places policymakers from Singapore, Malaysia and Thailand in the same initiative while preserving each jurisdiction’s supervisory requirements.
The participating institutions will concentrate on three areas: cross-border acceptance and settlement, interoperability between digital money networks, and programmable transaction controls. The third category covers identity verification, sanctions screening and restrictions that financial institutions may need when transferring money internationally.
MAS Deputy Managing Director Leong Sing Chiong said cooperation was necessary because financial markets would increasingly use multiple forms of digital money. He welcomed both central banks’ participation in developing practical arrangements for cross-border settlement.
Bank Negara Malaysia Deputy Governor Aznan bin Abdul Aziz described frictionless payments using different digital currencies as an increasingly realistic prospect. His Thai counterpart, Daranee Saeju, said BLOOM would inform the country’s regulatory approach to tokenized money, particularly wholesale settlement and international payments.
The regulators have not announced a shared stablecoin license, common currency or operational settlement network covering all three countries. Their October 23 agreement concerns the development of implementation frameworks and commercial arrangements between participating institutions.
Ripple and Circle gain access to wider regional discussions
MAS added Ripple, Airwallex, Mastercard, Maybank, Monee, Nium, ShopeePay, Visa and the World Bank Group to BLOOM’s participant list. Circle, Coinbase, J.P. Morgan, DBS, Anchorage Digital and Standard Chartered were among the existing members.
For Ripple, participation builds on its RLUSD trade finance pilot with Unloq, which examined settlement using the XRP Ledger. The initiative explored how tokenized commercial transactions could connect payment obligations with trade documentation and financing conditions.
Ripple’s inclusion does not mean Malaysia or Thailand has authorized RLUSD for domestic payments. MAS has not named RLUSD as a mandatory settlement asset or announced a transaction corridor using the token under the expanded arrangement.
Circle’s involvement gives the issuer of USDC a place in discussions covering regulated stablecoins and interoperability between financial networks. The announcement does not specify a new USDC pilot involving either central bank, nor does it establish regulatory approval for USDC across Southeast Asia.
The initiative already includes Visa and Nium’s settlement pilot, which examines cross-border payments using regulated U.S. dollar- and euro-backed stablecoins. The companies are testing settlement outside conventional banking hours, including weekends and public holidays.
Malaysia and Thailand pursue their own stablecoin rules
Malaysia has been examining ringgit-denominated stablecoins through its Digital Asset Innovation Hub. In February, Bank Negara Malaysia announced three controlled initiatives involving ringgit stablecoins and tokenized deposits for domestic and international wholesale payments.
The central bank said the experiments would inform its policy direction, with further regulatory clarity expected by the end of 2026. The work includes settlement of tokenized assets and possible connections to wholesale central bank digital currency research.
Thailand has moved further into a public consultation on baht-backed stablecoins. Its central bank opened a consultation on October 20 proposing regulatory principles for issuers and wallet providers, including reserve backing, redemption safeguards and transaction monitoring.
The Bank of Thailand’s consultation treats baht stablecoins as a possible complement to existing payment systems. It proposes separate responsibilities for issuers and wallet providers, alongside requirements addressing financial stability and cybersecurity.
Neither country’s work amounts to adopting Singapore’s stablecoin rules. Singapore has been conducting its own stablecoin regulatory consultations, including proposals covering foreign issuers and the treatment of interest.
BLOOM focuses on settlement arrangements across borders
MAS said common implementation frameworks could reduce the need for banks and payment companies to negotiate separate operating arrangements with every counterparty. The project will examine contracting, settlement procedures and the technical links needed between digital money systems.
The World Bank Group is joining as a multilateral development institution, contributing experience in payment system modernization and financial inclusion. Its involvement gives the project another participant focused on the requirements of developing economies.
The October 23 announcement did not identify a launch date for a three-country settlement service, transaction volumes or a timetable for adopting common rules. BLOOM’s participating institutions will work on implementation frameworks while the three central banks retain responsibility for their respective regulatory decisions.
