Singapore's MAS Allocates $112 Million for Fintech, Web3 Projects

The Monetary Authority of Singapore (MAS) has announced its commitment to allocate 150 million Singapore Dollars (around $112 million) over three years for the renewed Financial Sector Technology and Innovation (FSTI 3.0) Scheme.

This initiative is aimed at supporting FinTech solutions, including projects related to Web3 technology.

The MAS has revealed that the fund's objective is to expedite innovation by backing advanced technology projects through various tracks.

These tracks comprise the Enhanced Centre of Excellence, Environmental, Social, and Governance fintech, and the Innovation Acceleration, the latter of which encompasses Web3 projects.

The MAS emphasises its recognition of the significance of collaboration with the industry to foster innovative FinTech solutions originating from emerging technologies, such as Web 3.0.

The fund will provide grant funding to individual Web3 projects, facilitating trials and commercialization.

Corporate venture capital (CVC) entities will be eligible for funding of up to 2 million Singapore Dollars, while environmental, social, and governance (ESG) FinTech solutions can receive up to 500,000 Singapore Dollars.

The regulator's commitment extends to the promotion of artificial intelligence and data analytics (AIDA), as well as regulatory technology (RegTech) adoption.

The focus will be on encouraging AIDA adoption in smaller financial firms and catering to the needs of less digitally mature firms seeking RegTech solutions.

Ravi Menon, the Managing Director of MAS, highlighted the remarkable growth in the fintech sector due to the Financial Sector Development Fund.

This fund has disbursed $340 million for diverse initiatives since the inception of the FSTI program in 2015.

Notable projects, including a significant cross-border payment initiative with Thailand, have resulted from the FSTI program.

MAS's move stands out as a distinctive approach compared to other significant Singaporean financial entities, like Temasek.