Singapore, Malaysia and Thailand are joining forces to explore how regulated stablecoins and tokenized bank deposits could support cross-border payments. The initiative, led by the Monetary Authority of Singapore (MAS), brings together three central banks and major financial technology companies, including Ripple, Visa, Mastercard and JPMorgan.

Announced on October 23, 2026, the expanded collaboration aims to develop common approaches for transferring and settling digital money across financial institutions, payment networks and national borders.

Project BLOOM Brings Three ASEAN Central Banks Together

The collaboration operates under Project BLOOM, which stands for Borderless, Liquid, Open, Online, Multi-currency. Singapore launched the initiative in October 2025 to explore how digital money could be used in financial services, particularly international payments.

MAS confirmed that Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT) have joined as policymaker members. The three central banks will work with financial institutions and technology providers to examine how different forms of digital money can be accepted, exchanged and settled across markets.

The project focuses on two main instruments: regulated stablecoins and tokenized bank deposits. Stablecoins are digital assets designed to maintain a relatively stable value by referencing an asset, such as the US dollar, while tokenized bank deposits are digital representations of money held in commercial bank accounts.

Both instruments could support more efficient payment and settlement processes. However, their practical use across countries requires financial institutions to address differences in technology, operating procedures and regulatory requirements.

Cross-Border Stablecoin Payments Require Interoperability and Security

One of the main challenges for ASEAN stablecoin payments is ensuring that different financial networks can communicate and process transactions reliably. Banks and payment providers may operate on separate systems, making it difficult to transfer digital money between institutions without additional technical and commercial arrangements.

Project BLOOM will examine how different digital money systems can work together across borders. The initiative also aims to develop common implementation frameworks that could reduce the need for financial institutions to establish separate arrangements with every counterparty or market.

Security and regulatory compliance are also central to the project. Its work includes identity verification, sanctions screening and transaction controls to help ensure that digital money transfers meet relevant requirements.

MAS Deputy Managing Director Leong Sing Chiong said the future of finance would involve different forms of digital money operating across multiple institutions and markets. He emphasized the importance of cooperation between policymakers and industry participants in addressing practical challenges involving acceptance, settlement and interoperability.

The initiative is intended to support smoother international transactions while taking account of differences in national regulations and supervisory expectations. However, the expanded membership does not mean that a unified three-country payment system is already operational.

Ripple, Visa and Mastercard Join the Digital Payments Initiative

Project BLOOM includes major companies from the banking, payments and digital asset industries. Its participants include Ripple, Visa, Mastercard, Circle, Coinbase, JPMorgan, Standard Chartered and Stripe, alongside other financial institutions and technology providers.

Ripple has already outlined a test involving its US dollar-linked stablecoin, RLUSD, on the XRP Ledger. Announced in March 2026, the initiative involves supply chain technology company Unloq and its SC+ platform to explore payments for international trade.

The system is designed to release payments automatically when agreed transaction conditions have been met. For example, a payment could be processed once specified requirements are fulfilled, reducing the need for manual approval at every stage of a transaction.

Visa and Mastercard are also participants in BLOOM. However, the specific technologies and payment arrangements that the two companies will test under the expanded initiative have not been fully detailed in the announcement.

The participation of these companies reflects growing interest in exploring stablecoins for financial applications beyond cryptocurrency trading. Potential use cases include international payments, corporate treasury operations and trade finance.

ASEAN Stablecoin Payments Remain in the Testing Stage

Despite the involvement of major financial institutions, Project BLOOM remains an initiative for developing and testing approaches to digital money settlement. The October 23 announcement established a broader collaboration among policymakers and industry participants, rather than confirming the launch of a live regional payment service.

The participating central banks will continue working with industry partners to develop practical arrangements for using different forms of digital money across financial networks and jurisdictions. The project also seeks to address regulatory considerations while improving the efficiency of cross-border transactions.

For businesses and policymakers, the initiative provides a framework for examining how regulated stablecoins and tokenized bank deposits could fit into the future of international payments. Its practical impact will depend on the results of testing, the development of compatible systems and the requirements set by the participating jurisdictions.

PHOTO: MAGNIFIC

This article was created with AI assistance.

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