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

Author: Ariel, Encrypted City

Six Taiwanese Banks in a Potential List for Stablecoin Issuance
Taiwan’s draft Virtual Asset Service Act has been passed by the Executive Yuan. Although it has not yet undergone the third reading in the Legislative Yuan, the Financial Supervisory Commission (FSC) has been actively working on subsidiary regulations. Initial planning is to allow only domestic financial institutions to issue stablecoins, encouraging many businesses to jump in.

According to a report by the Economic Daily News, 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 strategies of these 6 banks in blockchain and virtual-asset-related areas are summarized as follows:

• CTBC Bank: Approved by the FSC to pilot virtual asset custody services. Its initial focus is on Bitcoin and Ether, managed through cold wallets and private-key sharding technology. It previously publicly recruited blockchain engineers in 2025.
• Cathay United Bank: Approved to pilot virtual asset custody services, targeting high-net-worth individual customers, and participating in the FSC’s RWA tokenization working group. It is expected to trial issuing on-chain bonds.
• Taishin Bank: Currently receiving guidance on custody services. Recently, it partnered with Taiwan Exchange HOYA BIT to provide New Taiwan Dollar trust services, offering deposit and withdrawal fund flows 24/7.
• KGI Bank: After obtaining pilot qualification, it partnered with MaiCoin, BitoPro, and other legitimate Taiwan trading platforms. It will transfer some assets into bank cold wallets for custody. It has also launched the “KGI Coin Enjoy Card,” offering card swipe rewards to exchange for cryptocurrencies.
• Union Bank: In addition to being approved to pilot custody services, it also acquired about 9.67% equity in MaiCoin through investment, strengthening its participation in Taiwan’s crypto market.
• Fubon Bank: Through Taiwan Mobile, Fubon established “TWEX Taiwan Virtual Asset Exchange,” and Fubon provides trust custody and cold-wallet technology mechanism.

Besides the banks above, Taiwan’s state-owned banks First Bank and Hua Nan Bank have also told the Commercial Times that they have a strong interest in stablecoins. The chairman of E.SUN Financial Holding has also stated that the company will not miss out on the stablecoin and tokenization markets.
In addition, the strategic distribution partnership between Capital Layer, a blockchain enterprise settlement infrastructure provider, and Dunyang Technology, Taiwan’s largest systems integrator, is also seen as part of stablecoin deployment.

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 Service launched CryptoDT blockchain financial services and issued Taiwan Stablecoin (TWDT-ETH). It adopted the Ethereum token standard ERC-20, with each token pegged 1:1 to the value of the new Taiwan dollar. The circulating TWDT-ETH represented that there was 1 yuan guaranteed for each token in the trust account; the total number of tokens was equal to the trust balance. It also regularly published the balances and had them verified and certified by accountants.
Recently, the tech YouTuber “Tech Classroom,” which has repeatedly said that “stablecoins are just prepaid cards” and criticized stablecoins as hype pushed by crypto industry players, actually had once praised Taiwan Stablecoin as “Taiwan’s first stablecoin,” and said it was very much looking forward to the future development of blockchain in Taiwan.

Image source: Tech Classroom fan page | Taiwan Stablecoin issued by Green World Fintech Service, which was regarded at the time as Taiwan’s first “Taiwan Dollar stablecoin”

However, at that time, Taiwan Stablecoin lacked market demand and real use cases. It was quickly delisted by partner exchanges and quietly exited the market. With Taiwan’s domestic special legislation gradually becoming clearer and international attention on stablecoins increasing, it remains to be seen whether Green World will restart the project, or whether it will attract other payment providers to jump in and compete for this opportunity.

In 2026, is Taiwan’s stablecoin ready?
Under the current draft regulations, stablecoin issuers must properly set aside reserves for the fiat currencies they receive, and they are not allowed to distribute interest or rewards—this has also sparked curiosity about how issuers will make profits in the future.
An insider told the Economic Daily News that the purpose of banks issuing stablecoins is to further seize opportunities in blockchain finance and real-world asset tokenization (RWA).
Previously, the FSC vice chairperson, Zhuang Xiuyuan, also revealed that some Taiwanese import and export traders have already started using stablecoins in actual payment and settlement. When the amount of stablecoins accumulated by traders gradually increases, they will inevitably seek to connect with traditional financial institutions.
After Taiwan Stablecoin’s long period of failure, is the market truly ready to welcome Taiwan’s stablecoin? Zhuang Xiuyuan said that she is optimistic that, driven by supply-chain payment demand, new demand for Taiwan dollar stablecoins will emerge domestically, and at this time the role of financial institutions is to provide seamless integration between fiat currency and stablecoins.