Singapore Blockchain Banking Case Study: Financial Inclusion Through Innovation - Maxthon

Executive Summary

Singapore presents a contrasting case study to Canada’s unbanked crisis. With over 98% of adult residents having bank accounts, Singapore has largely solved basic financial access. However, the city-state faces different challenges around serving its 1.5 million migrant workers and positioning itself as a global blockchain financial hub. Singapore’s proactive regulatory approach and advanced blockchain infrastructure offer valuable lessons for financial inclusion worldwide.

How Blockchain Could Help

The article outlines several promising applications:

Lower remittance costs: Traditional remittances carry average fees of 6.62% worldwide, with some corridors reaching 10% or more, while blockchain transfers can complete transactions for under 1% CoinDesk. This matters especially for immigrants, who account for 90% of Canada’s labour force growth and 90% of whom sent money abroad in 2023 Ezo.

Accessibility without traditional requirements: DeFi platforms don’t require credit scores, minimum balances, or physical branch access – just internet connectivity. This could help Indigenous communities and rural populations left behind by branch closures.

24/7 operation: Unlike traditional banks with business hours, blockchain systems operate continuously, providing flexibility for workers with non-standard schedules.

The Reality Check

However, there are significant challenges:

Over one-third of the unbanked lack sufficient money to open bank accounts IBM, which means they may struggle with any system requiring initial deposits
Volatility and security risks remain concerns for those who can least afford losses
Digital literacy and smartphone access aren’t universal, particularly among seniors
Canada lacks clear regulatory frameworks for DeFi activities like staking rewards

Most Central Bank Digital Currency (CBDC) initiatives won’t be completed until 2026-2029, with Canada primarily exploring blockchain to enhance banking operations rather than direct consumer use MobiFin.

Bottom Line

Blockchain offers genuine promise for reducing costs and improving access, particularly for remittances and basic financial services. But it’s not a magic solution – successful financial inclusion requires technology combined with supportive government policies, financial literacy programs, and partnerships between governments, fintechs, and financial institutions CoinLaw. The question isn’t whether blockchain can help, but whether Canada will create the regulatory clarity and infrastructure needed to make it work safely for vulnerable populations

Case Study: Singapore’s Financial Inclusion Landscape

Current State

Banking Access (2025)

98%+ of adult Singapore residents have bank accounts
Near-universal financial inclusion for citizens and permanent residents
Basic Banking Accounts (BBAs) available since 2002 through major banks
Government collaboration to ensure all Singaporean children have bank accounts

The Hidden Gap: Migrant Workers

1.5 million migrant workers in Singapore (approximately 25% of population)
Many lower-skilled workers paid in cash without bank accounts
Remittances from Singapore reach approximately USD 6.5 billion annually
Workers sending money home face 5-20% transaction costs through traditional channels
Significant underbanked population despite high overall banking penetration

Regional Context Singapore sits at the center of Southeast Asia, where over 60% of the 600 million population remains underbanked or unbanked. This positions Singapore uniquely as both a solved market domestically and a testing ground for regional solutions.

Key Challenges

1. Remittance Costs Traditional money transfer services charge 6-10% in fees globally, with Singapore-based migrant workers losing significant portions of their earnings to transfer costs.

2. Access for Transient Workers Lower-skilled migrant workers face barriers including:

Lack of traditional banking relationships
Cash-based payment systems
Temporary residency status
Limited financial literacy
Language barriers

3. Cross-Border Complexity Workers need to send money across multiple Southeast Asian corridors (Singapore to Philippines, Myanmar, Bangladesh, India) with varying regulatory frameworks and infrastructure quality.

Singapore’s Blockchain Solutions

Regulatory Infrastructure

Monetary Authority of Singapore (MAS) Leadership

Singapore has established the world’s most comprehensive blockchain banking framework:

Project Ubin (2016-2020)

Multi-phase exploration of blockchain for payments clearing and settlement
Successfully developed wholesale CBDC prototypes
Created foundation for tokenized finance ecosystem
Published open-source code for global adoption

Project Guardian (2022-Present)

Testing asset tokenization and DeFi protocols
Industry pilots with major financial institutions
Focuses on tokenized deposits, bonds, and structured products
Exploring programmable money applications

Project Orchid (2023-Present)

Retail CBDC research (digital Singapore dollar)
Focus on improving local financial infrastructure
Four key building blocks: settlement ledger, tokenization bridge, programmability protocol, name service
SGD Testnet launched for financial institutions testing

Payment Services Act (PSA) Framework

Comprehensive licensing for Digital Payment Token (DPT) services
29 licensed operators as of late 2024 (13 new licenses issued in 2024)
Clear custody requirements and consumer protection measures
Anti-money laundering (AML) and terrorism financing safeguards

Financial Services and Markets Act (FSMA) 2022

Regulates overseas digital token service providers
Enhanced cross-border risk management
Implemented in phases from 2023-2025

Practical Blockchain Solutions in Action

1. Remittance Services

Toast

Peer-to-peer blockchain remittance app targeting Filipino migrant workers
81% cheaper than traditional banks
Two-minute transfer times
Cash pickup at 7,000+ locations or direct bank transfer
Raised $1.2M seed funding for expansion

Key Innovation: Eliminates need for sender or recipient to have bank accounts, using blockchain as settlement layer.

Ripple Payments

Expanded Major Payment Institution license from MAS (2024)
Blockchain-based cross-border payments for institutions
Handles technical and compliance elements for banks and fintechs
Enables XRP and RLUSD adoption across region

Everex-Shwe Bank Partnership

Blockchain remittances between Myanmar and Thailand
Serves 3 million Myanmar migrant workers
Sub-one-minute transfer times
Transparent audit trail
Addresses informal channel risks

2. Stablecoin Integration

Singapore received nearly USD 1 billion in crypto payments in Q2 2024 alone, demonstrating rapid mainstream adoption.

Triple-A Partnership with DCS Card Centre (September 2024)

DCS cardmembers can top up virtual accounts with Bitcoin, Ether, USDC
Bridges crypto and traditional payment rails
Merchant crypto payment processing

Benefits for Migrant Workers:

Dollar-pegged stability reduces volatility risk
Lower conversion costs
24/7 availability
Instant settlement

3. Digital Banking Innovation

DBS Digibank

Digital-only bank serving underbanked segments
Uncollateralized microloans up to certain limits
Instant international remittances
24/7 virtual in-app assistance
Blockchain-powered backend infrastructure

4. AI-Powered Financial Inclusion

Singapore banks are deploying AI systems to:

Provide multilingual customer service for diverse migrant populations
Assess creditworthiness using alternative data (mobile payments, utility bills)
Detect fraud while reducing false positives that block legitimate transactions
Personalize financial products for underserved segments

Long-Term Solutions & Strategic Initiatives

1. Wholesale vs. Retail CBDC Strategy

Singapore’s Pragmatic Approach

MAS has deliberately focused on wholesale CBDCs over retail because financial inclusion is not an urgent domestic issue. However, this wholesale focus creates infrastructure that enables private sector innovation for retail users.

Wholesale CBDC Benefits:

Improves interbank settlement efficiency
Reduces correspondent banking costs
Enables 24/7 cross-border payments
Creates foundation for tokenized finance

Retail Innovation Layer:

Private stablecoins serve retail markets
Licensed operators provide consumer-facing services
Competition drives down costs and improves service
Regulatory clarity enables responsible innovation

2. Tokenization of Financial Assets

Project Guardian Expansion (2024-2025)

MAS is testing tokenization of:

Digital structured products
Investment vehicles
Asset-backed securities
Bonds
Bank liabilities

Impact on Financial Inclusion:

Fractional ownership reduces minimum investment barriers
24/7 trading increases liquidity
Programmable compliance reduces costs
Cross-border investment simplified

Example: Ant Group, HSBC, DBS collaboration on treasury management solution using tokenized deposits for real-time multi-currency clearance and settlement.

3. Cross-Border Payment Networks

Project Ubin+ (2022-Present)

Collaboration with international partners using wholesale CBDC for cross-border foreign exchange settlements.

Project Dunbar (Completed 2022)

BIS Innovation Hub project with multiple central banks demonstrating direct institutional transactions through common CBDC platform, potentially eliminating intermediaries.

Benefits:

Reduced correspondent banking chains
Lower costs and faster settlement
Increased transparency
Improved compliance

4. Blockchain Infrastructure Development

Singapore Blockchain Innovation Programme (SBIP)

SGD 12 million research programme focused on:

Trade and logistics applications
Supply chain transparency
Commercialization support
Community building

Targets: Small and medium enterprises (SMEs) that face funding gaps and can benefit from blockchain-enabled trade finance.

5. Regional Financial Hub Strategy

API Exchange (APIX)

MAS-sponsored initiative improving cross-collaboration across financial services ecosystem through open banking principles.

Digital Banking Licenses

MAS has issued licenses for digital-only banks targeting:

Value-conscious customers
Convenience-focused segments
Underserved regional populations

Goal: Create competitive pressure on traditional banks while expanding access.

6. Education and Literacy Programs

Multi-Stakeholder Approach:

Ministry of Education partnerships ensuring children have accounts and financial literacy
Industry-led initiatives teaching digital wallet safety
Multi-language financial education for migrant communities
Consumer protection campaigns on crypto risks

7. Responsible Innovation Framework

MAS Regulatory Philosophy:

Risk-proportionate regulation
Technology-neutral approach
Collaborative sandbox environment
Clear licensing pathways
Strong consumer protection

Key Principles:

Innovation must not compromise financial stability
Consumer assets must be protected (statutory trusts for customer funds)
AML/CFT compliance non-negotiable
Transparency and disclosure requirements
Restrictions on risky retail products (lending, staking)

Singapore’s Impact on Global Financial Inclusion

Regional Spillover Effects

1. Southeast Asian Integration

Singapore’s blockchain infrastructure serves as testing ground for solutions deployed across the region:

Remittance corridors to Philippines, Indonesia, Vietnam, Myanmar, Thailand
Cross-border payment standards
Regulatory best practices
Technology transfer

Example: Singapore-based fintech solutions expanding to serve 70% underbanked/unbanked Southeast Asian population (420+ million people).

2. Innovation Exports

Singapore companies and frameworks being adopted globally:

Digital banking models replicated in other markets
Blockchain payment protocols implemented worldwide
Regulatory frameworks studied by other jurisdictions

Setting Global Standards

1. Regulatory Clarity

Singapore’s clear frameworks have influenced:

EU’s MiCA regulations
Hong Kong’s digital asset licensing
Switzerland’s FINMA approach
UAE’s VARA framework

2. Public-Private Collaboration Model

Singapore’s approach of government-led research with industry implementation provides blueprint for:

Balancing innovation and stability
Managing financial crime risks
Protecting consumers while enabling competition
Transitioning from pilots to production

3. Wholesale-Retail Architecture

Singapore demonstrates how:

Central bank infrastructure enables private innovation
Regulated private stablecoins can serve retail markets
Competition improves services for end users
Clear separation of roles (government provides rails, private sector serves customers)

Measurable Impacts (2024-2025)

Remittance Cost Reduction:

Blockchain remittances: <1% fees vs. 6-10% traditional
Estimated savings for migrant workers: USD 325-585 million annually on Singapore’s USD 6.5 billion in remittances

Transaction Speed:

Traditional: 1-5 days
Blockchain: Minutes to instant
Benefit: Improved cash flow for families dependent on remittances

Financial Access:

Digital wallet adoption growing faster than traditional bank account penetration in region
Mobile-first solutions reaching populations traditional banks cannot serve economically

Economic Efficiency:

Reduced tied-up capital in nostro/vostro accounts
Lower operational costs for banks
Increased competition driving down consumer costs

Outlook: 2025-2030

Near-Term Developments (2025-2026)

1. Stablecoin Regulatory Framework Launch

Singapore finalizing regulations for single-currency stablecoins pegged to SGD or G10 currencies, providing clear pathway for licensed issuers.

Expected Impact:

More mainstream adoption by financial institutions
Reduced barriers for businesses to accept crypto payments
Enhanced consumer protection
Clearer tax treatment

2. Expanded CBDC Pilots

Project Orchid adding four new trials focused on programmable money applications.

Use Cases:

Conditional payments for supply chain finance
Automated escrow for real estate
Smart contracts for insurance claims
Cross-border business-to-business payments

3. Regional Payment Integration

Singapore working with ASEAN partners on interoperable digital payment systems.

Goals:

Seamless cross-border retail payments
Common QR code standards
Instant settlement
Competitive costs

Medium-Term Transformation (2026-2028)

1. Tokenized Asset Markets

Maturation of Project Guardian pilots into production systems:

Active secondary markets for tokenized securities
Retail investors accessing institutional products
Fractional real estate ownership
Tokenized commodities trading

2. AI-Blockchain Convergence

Integration of artificial intelligence with blockchain infrastructure:

Automated compliance and reporting
Intelligent fraud detection
Personalized financial services
Predictive risk management

3. Quantum-Resistant Cryptography

As quantum computing advances, Singapore preparing blockchain infrastructure upgrades:

Post-quantum cryptographic standards
Secure multi-party computation
Zero-knowledge proofs for privacy

Long-Term Vision (2028-2030)

1. Fully Programmable Financial System

Singapore aims to create comprehensive programmable money ecosystem where:

Payments execute automatically based on conditions
Assets transfer instantaneously with ownership changes
Compliance is embedded in transactions
Financial services are composable and interoperable

2. Global Digital Asset Hub

Singapore positioning itself as primary bridge between:

Traditional finance and decentralized finance
East and West payment corridors
Regulated and permissionless systems
Fiat and digital currencies

3. Financial Inclusion Leadership

Singapore serving as model and technology provider for financial inclusion globally:

Exporting proven blockchain solutions
Training regulators from other jurisdictions
Providing infrastructure-as-a-service
Demonstrating responsible innovation

Challenges and Risks

Technical Challenges

1. Scalability Current blockchain networks face throughput limitations. Singapore must ensure infrastructure can handle payment volumes comparable to traditional systems.

2. Interoperability Multiple blockchain platforms must communicate seamlessly. Cross-chain standards and bridges remain immature.

3. Security Smart contract vulnerabilities, private key management, and quantum computing threats require continuous vigilance.

Regulatory Challenges

1. International Coordination Cross-border blockchain payments require regulatory harmonization. Fragmented global approaches create friction.

2. Balancing Innovation and Protection Over-regulation stifles innovation; under-regulation risks consumer harm. Finding optimal balance remains difficult.

3. Illicit Finance Blockchain’s pseudo-anonymity creates money laundering and sanctions evasion risks requiring robust controls.

Economic Challenges

1. Volatility Despite stablecoins, crypto market volatility creates systemic risks if widely adopted.

2. Disintermediation Blockchain-enabled finance may reduce need for traditional banks, potentially destabilizing existing financial system.

3. Concentration Risk A few large platforms (Grab, DBS) dominate. Over-reliance on key players creates single points of failure.

Social Challenges

1. Digital Divide Not all migrant workers have smartphones or digital literacy. Purely digital solutions may exclude most vulnerable.

2. Trust and Education Crypto scams and collapses (FTX, Terra/Luna) have damaged trust. Extensive education needed for safe adoption.

3. Cultural Barriers Cash remains culturally preferred in many communities. Changing deeply rooted behaviors requires time and trust-building.

Key Lessons for Other Jurisdictions

1. Start with Infrastructure, Not Applications

Singapore’s approach of building robust CBDC and tokenization infrastructure before mass retail adoption provides stable foundation. Contrast with jurisdictions that allowed unregulated crypto boom-bust cycles.

2. Regulatory Clarity Attracts Innovation

Clear, principles-based regulation makes Singapore magnet for legitimate blockchain companies while deterring bad actors. Ambiguity drives responsible innovation elsewhere.

3. Public-Private Partnership Model

Government provides research, infrastructure, and oversight. Private sector delivers consumer-facing services and competition. Neither can succeed alone.

4. Focus on Real Problems

Singapore’s blockchain initiatives target specific pain points (remittance costs, settlement efficiency, SME financing) rather than pursuing technology for its own sake.

5. Pilot Before Scaling

Multi-year, multi-phase approach (Projects Ubin, Orchid, Guardian) allows learning, iteration, and risk management before committing to production systems.

6. Wholesale Infrastructure Enables Retail Innovation

Focusing first on wholesale CBDC and institutional use cases creates foundation that private sector builds retail solutions upon.

7. Regional Solutions for Regional Problems

Singapore recognizes its role in broader Southeast Asian ecosystem and designs solutions that work cross-border, not just domestically.

8. Education is Essential

Technical infrastructure alone insufficient. Population needs digital literacy, fraud awareness, and understanding of risks.

Comparative Analysis: Singapore vs. Canada

Dimension	Singapore	Canada
Unbanked Population	<2% citizens; migrant workers underserved	3% unbanked (600,000); 15% underbanked (6 million)
Primary Challenge	Remittance costs for migrants; regional financial inclusion	Branch closures; Indigenous community access; rural populations
Regulatory Approach	Proactive, comprehensive framework	Fragmented; slow CBDC progress; DeFi regulatory gaps
Blockchain Maturity	Production-ready infrastructure; multiple licensed operators	Experimental; limited commercial deployment
Government Role	Active leadership in building infrastructure	Reactive; studying but not building
Private Sector	Thriving fintech ecosystem with clear rules	Innovation constrained by regulatory uncertainty
CBDC Status	Wholesale focus; retail via private stablecoins	Exploratory research; privacy concerns
Use Case Focus	Cross-border payments; asset tokenization; remittances	Potential use cases identified but not implemented
Timeline	Infrastructure operational 2024-2025; scaling 2026-2030	Regulatory clarity and pilot programs 2026-2029

Key Insight: Singapore’s 5-year head start in blockchain financial infrastructure gives it substantial competitive advantage. Canada risks falling further behind without decisive action.

Recommendations for Maximizing Impact

For Policymakers

1. Accelerate Regulatory Clarity Publish comprehensive frameworks for DeFi activities, stablecoins, and tokenized assets. Regulatory uncertainty is bigger barrier than regulation itself.

2. Fund Infrastructure Research Government investment in CBDC and blockchain infrastructure creates foundation for private innovation. Singapore’s public investment catalyzed multi-billion dollar private sector ecosystem.

3. Create Regulatory Sandboxes Allow controlled experimentation with new models while protecting consumers. Learn from failures in low-risk environment.

4. Focus on Interoperability Ensure solutions work cross-border and across platforms. Isolated systems create silos, not solutions.

5. Prioritize Financial Education Invest heavily in digital and financial literacy programs, especially for vulnerable populations. Technology without understanding creates new exclusions.

For Financial Institutions

1. Embrace Hybrid Models Integrate blockchain capabilities into existing infrastructure rather than viewing as replacement. Most successful solutions bridge traditional and crypto worlds.

2. Focus on User Experience Technology should be invisible to end users. Success measured by simplicity, not sophistication.

3. Target Real Pain Points Address specific problems (high remittance costs, slow settlements) rather than pursuing blockchain for its own sake.

4. Invest in Compliance Robust AML/CFT and consumer protection not optional. Build trust through transparency and security.

5. Collaborate Across Industry Network effects essential for payments. Work with competitors on common standards and interoperability.

For Fintech Companies

1. Build for Regulation Design systems that enable compliance by default rather than treating regulation as afterthought.

2. Start with Underserved Segments Migrant workers, SMEs, and rural populations offer largest opportunity. Competing with banks for banked customers is harder.

3. Prioritize Security One major breach or fraud incident can destroy years of trust-building. Invest heavily in security from day one.

4. Educate Users Success requires users who understand and trust the product. Budget for extensive education and support.

5. Plan for Scale Pilot projects are easy; scaling to millions of transactions per day is hard. Build architecture that scales from beginning.

Conclusion

Singapore’s blockchain banking ecosystem demonstrates that technology can meaningfully improve financial inclusion when paired with supportive regulation, robust infrastructure, and focus on real user needs. The city-state’s success in reducing remittance costs, accelerating payment speeds, and creating frameworks for tokenized finance provides a roadmap for other jurisdictions.

However, Singapore’s model is not directly transferable. Canada faces different challenges—physical geography, Indigenous reconciliation, aging rural populations—that require adapted solutions. Singapore’s migrant workers need cheap remittances; Canada’s Indigenous communities need branches and trust-building. Singapore’s strength is agile government and concentrated population; Canada’s challenge is vast geography and federal-provincial complexity.

Yet core principles remain universal:

Infrastructure first: Build robust foundations before mass adoption
Regulatory clarity: Clear rules enable responsible innovation
Public-private partnership: Government and industry must collaborate
User-centered design: Technology serves people, not vice versa
Education essential: Understanding enables safe adoption
Pilot before scaling: Learn and iterate before committing

For Singapore specifically, the path forward requires:

Completing stablecoin regulatory framework
Scaling Project Guardian pilots to production
Expanding regional payment integration
Maintaining regulatory leadership as global standards emerge
Ensuring technology serves all segments, including most vulnerable migrant workers

The 2025-2030 period will determine whether Singapore’s blockchain infrastructure becomes global standard or niche experiment. Early indicators—merchant adoption, institutional participation, regulatory clarity—suggest strong probability of success. The challenge now is scaling responsibly while maintaining the stability and security that made Singapore trusted financial hub in the first place.

Blockchain cannot solve all financial inclusion challenges. Digital divides, trust deficits, and cultural preferences remain. But for specific problems—expensive remittances, slow settlements, lack of access to capital markets—blockchain offers demonstrably better solutions. Singapore is proving that with right infrastructure, regulation, and execution, financial services can be more accessible, affordable, and inclusive.

The question for other jurisdictions: will they build similar infrastructure and capture these benefits, or will they watch from the sidelines as Singapore and other early movers define the future of global finance?

Sources & Further Reading

Singapore Government & MAS Publications:

Project Ubin Reports (Phases 1-5)
Project Guardian Industry Pilots
MAS Blockchain and DLT Guidelines
Payment Services Act Framework
Financial Services and Markets Act

Industry Reports:

Bain & Company: “Future of Southeast Asia’s Digital Financial Services”
World Economic Forum: “Closing Southeast Asia’s Financial Inclusion Gap”
Temasek: “Southeast Asia Digital Economy Report”

Academic & Research:

BIS Innovation Hub: Project Dunbar
World Bank: Global Remittance Data
IMF: CBDCs and Financial Inclusion

Market Data:

Chainalysis: Cryptocurrency Geography Report
Statista: Digital Payment Statistics
CB Insights: Fintech Funding Trends

This case study synthesizes current developments as of December 2025 and should be updated quarterly as Singapore’s blockchain ecosystem evolves rapidly.