The situation for Taiwan's stablecoins heats up! Rumor has it that "6 banks" may be the first to issue them.

Author: Ariel, Encrypted City

Taiwan’s 6 Banks Potentially Launching Stablecoins
Taiwan’s Draft Virtual Asset Service Act has been approved by the Executive Yuan, though it has not yet passed the third reading in the Legislative Yuan, but the Financial Supervisory Commission is actively drafting subsidiary regulations, initially planning to only allow domestic financial institutions to issue stablecoins, encouraging many industry players to try.
According to the Economic Daily, there are 6 banks rumored to be the first to issue stablecoins: CTBC Bank, Cathay United Bank, Taishin Bank, KGI Bank, Union Bank, and Taipei Fubon Bank.
The blockchain and virtual asset-related strategies of these 6 banks are summarized as follows:

• CTBC Bank: Approved by the FSC to pilot virtual asset custody services, initially focusing on Bitcoin and Ethereum, managed through cold wallets and private key sharding technology, and previously recruited blockchain engineers publicly in 2025.
• Cathay United Bank: Approved to pilot virtual asset custody services, targeting high-net-worth individual clients, and participating in the FSC’s RWA tokenization group, planning to trial on-chain bond issuance.
• Taishin Bank: Currently undergoing custody service guidance, recently collaborating with Taiwan Exchange Hoya Bit to offer New Taiwan Dollar trust services, providing 24/7 deposit and withdrawal services.
• KGI Bank: After obtaining pilot qualification, partnered with MaiCoin, BitoPro, and other legitimate Taiwanese trading platforms, transferring some assets into bank cold wallets for custody, and previously launched the “KGI Coin Enjoy Card” offering card rewards redeemable for cryptocurrencies.
• Union Bank: Besides being approved for custody services, it also acquired about 9.67% equity in MaiCoin through investment, strengthening its participation in Taiwan’s crypto market.
• Fubon Bank: Fubon established the “TWEX Taiwan Big Virtual Asset Exchange” through Taiwan Mobile, with trust custody and cold wallet technology provided by Fubon.

In addition to the above banks, Taiwan’s state-owned banks “First Bank” and “Hua Nan Bank” also expressed strong interest in stablecoins to the Commercial Times; E.SUN Financial Holding Chairman has also stated that the institution will not miss out on the stablecoin and tokenization markets.
Furthermore, the strategic distribution partnership between blockchain enterprise settlement infrastructure provider Capital Layer and Taiwan’s largest system integrator, DunYang Technology, is also seen as part of their stablecoin deployment plans.

In 2018, Taiwan’s first “Taiwan Dollar Stablecoin” quietly exited the market
On the other hand, years ago, Taiwan’s third-party payment provider Green World Fintech Services launched CryptoDT blockchain financial services and issued the Taiwan Stablecoin (TWDT-ETH), based on Ethereum’s ERC-20 token standard, with each token pegged 1:1 to the New Taiwan Dollar. The circulating Taiwan Stablecoins represented trust account backing of NT$1, with total tokens equal to the trust balance, and regularly published balances with CPA certification.
Recently, the YouTuber Tech Classroom, known for criticizing stablecoins as “value storage cards,” once openly called stablecoins a “tech hype” and criticized them as speculative. Back then, they actually praised TWDT as “Taiwan’s first stablecoin” and expressed great anticipation for blockchain development in Taiwan.

Image source: Tech Classroom Facebook page | The Taiwan Stablecoin issued by Green World Fintech was regarded as Taiwan’s first “Taiwan Dollar Stablecoin” at the time.

However, TWDT lacked market demand and practical use cases, quickly delisted from partner exchanges, and quietly exited. As Taiwan’s legal framework becomes clearer and international attention on stablecoins increases, whether Green World will restart or attract other payment providers to jump into this market remains to be seen.

Will Taiwan’s stablecoin be ready by 2026?
According to current draft regulations, stablecoin issuers must maintain reserves of fiat currency received, and cannot pay interest or rewards, raising questions about future profit models for issuers.
Insiders told the Economic Daily that the purpose of banks issuing stablecoins is to further tap into blockchain finance and the tokenization of real-world assets (RWA).
The FSC Deputy Chairperson, Zhuang Xiuyuan, previously revealed that some Taiwanese import-export traders have already begun actual transactions using stablecoins. As the amount of stablecoins held by traders gradually increases, they will inevitably seek to connect with traditional financial institutions.
After TWDT’s failure years ago, is the market truly ready to embrace Taiwan’s stablecoin? Zhuang Xiuyuan said, she is optimistic that, driven by supply chain payment demands, there will be new demand for Taiwan dollar stablecoins domestically, and the role of financial institutions at this point is to provide seamless integration between fiat and stablecoins.