The Monetary Authority of Singapore (MAS) committed 100 million Singapore dollars ($74.36 million) to beef up its finance sector’s quantum computing and artificial intelligence capabilities.

The latest fund injection by MAS, the central bank and financial regulatory authority of Singapore, is aimed at helping local financial institutions establish quantum computing infrastructure and speed up AI development and adoption.

Source: The Monetary Authority of Singapore

Singapore’s pursuit to become a fintech hub

MAS introduced the Financial Sector Technology and Innovation Scheme (FSTI 3.0) in 2022 to strengthen Singapore’s position as a fintech hub. Adding to its initial commitment of $111.5 million ($150 million Singapore dollars) over three years, the regulator committed another $74.36 million on July 18.

Eligible financial institutions will receive up to 50% co-funding for building quantum computing technology centers and viable institutional use cases. Companies building quantum-based cybersecurity solutions will be eligible for up to 30% co-funding.

A part of the fund will be diverted toward building AI innovation centers where AI models can be built, trained and deployed across various use cases. The regulator said:

“There are strong prospects for the financial industry to apply AI to solve industry-wide problems beyond what each financial institution can do individually.”

Singapore confirms AI pilot for fraud detection

MAS confirmed that the first AI pilot project is dedicated to scam and fraud detection use cases. The regulator will involve banks, technology solution providers and public agencies in the AI pilot.

The FSTI scheme is valid until March 2026. However, the Singapore government may consider extending the scheme based on its impact on the island nation’s fintech landscape.

Related: Singapore ups crypto exchanges risk factor in update to AML/CFT laws

The news comes after  MAS granted full regulatory approval to the Singapore wing of Paxos , the gold-backed stablecoin Pax Gold (PAXG) issuer, on July 2.

The regulatory approval will enable Paxos to launch a stablecoin that aligns with MAS’s upcoming regulatory framework. 

The Development Bank of Singapore Ltd (DBS), Southeast Asia’s largest bank by assets under management, will be Paxos’ primary banking partner. DBS will be responsible for cash management and the custody of the Paxos stablecoin reserves, according to the announcement.

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