Singapore is committing a significant investment of 100 million Singapore dollars ($74.36 million) to enhance its finance sector’s capabilities in quantum computing and artificial intelligence (AI). This move by the Monetary Authority of Singapore (MAS) aims to support local financial institutions with substantial co-funding to establish advanced technological infrastructure.

The MAS, Singapore’s central bank and financial regulatory authority, is injecting these funds to build quantum computing infrastructure and accelerate AI development and adoption within the financial sector. This initiative is part of Singapore’s broader strategy to solidify its position as a leading fintech hub.

MAS launched the Financial Sector Technology and Innovation Scheme (FSTI 3.0) in 2022 to boost Singapore’s fintech capabilities. With an initial commitment of $111.5 million ($150 million Singapore dollars) over three years, the regulator is now adding an additional $74.36 million as of July 18. Eligible financial institutions can receive up to 50% co-funding for creating quantum computing technology centers and developing practical use cases. Companies working on quantum-based cybersecurity solutions will also be eligible for up to 30% co-funding.

Part of the fund will be allocated to building AI innovation centers, where AI models can be developed, trained, and deployed across various applications. The regulator highlighted the potential of AI in addressing industry-wide problems, stating, “There are strong prospects for the financial industry to apply AI to solve industry-wide problems beyond what each financial institution can do individually.”

The first AI pilot project, confirmed by MAS, will focus on scam and fraud detection. This pilot will involve collaboration between banks, technology solution providers, and public agencies. The FSTI scheme is set to continue until March 2026, with the possibility of extension depending on its impact on Singapore’s fintech landscape.

In related news, MAS recently granted full regulatory approval to the Singapore wing of Paxos, the issuer of the gold-backed stablecoin Pax Gold (PAXG). This approval allows Paxos to launch a stablecoin aligned with MAS’s upcoming regulatory framework. DBS, Southeast Asia’s largest bank by assets, will be Paxos’ primary banking partner, responsible for cash management and custody of the stablecoin reserves.

SOURCE: Singapore commits $74.3M for quantum and AI in finance