News
RWA Tokenization Task Force Completes Technical Feasibility Validation — the FSC’s Next Phase Focuses on Regulatory Adaptation
2025-11-04
To align with global trends and further enhance supervisory effectiveness, the Financial Supervisory Commission (FSC) collaborated with the Taiwan Depository & Clearing Corporation (TDCC) and various financial institutions to establish the "Real World Asset (RWA) Tokenization Task Force" in June 2024. On September 25, 2025, the task force has completed its final (validation) reports, confirming the technical feasibility validation of RWA tokenization.
The task force comprises representatives from the Central Bank of the Republic of China, TDCC, and nine financial institutions — Cathay Securities, Cathay SITE, CTBC Bank, President Securities Corp., Taishin Bank, KGI Securities, Yuanta Financial Holdings, Taipei Fubon Bank, and KGI Bank. The supporting team consists of the Financial Information Service Co. (FISC), the Taiwan Stock Exchange, the Taipei Exchange (TPEx), and MasterLink Securities. The Task Force divided its work into three groups focusing on the tokenization of domestic bonds, foreign bonds, and funds respectively. A Proof-of-Concept (PoC) approach was adopted to assess the feasibility of promoting RWA tokens in Taiwan's financial market. Three groups delivered their mid-term (POC planning) reports in January 2025 and conducted validation testing through simulation, and the final (validation) reports were completed on September 25, 2025. The overview of the three groups’ validation testing is as follows：
1. Domestic Bond Group:
Built a proprietary blockchain and RWA trading platform to support (digital native) NT dollar–denominated corporate and financial bond tokens, providing services such as subscription, issuance, trading, dividend distribution, principal and interest repayment, and custody. The platform connected to the Central Bank Tokenized Financial Flow Platform (developed by the FISC, referred to hereafter as the " Financial Flow Platform"), using NT dollar deposit tokens to achieve delivery versus payment (DVP).
2. Foreign Bond Group:
Using a blockchain platform built by the TDCC, this group tokenized (digital twin) and fractionalized foreign bonds to provide services such as dividend distribution and repayment of principal and interest. It also developed a trading platform for investors and dealers, connecting to the Financial Flow Platform and using US dollar deposit tokens to achieve DVP.
3. Fund Group:
Using a blockchain platform built by TDCC, this group tokenized NT dollar money market funds and Taiwan equity funds (digital twin), providing subscription, redemption, and trading services. The platform connected to the Financial Flow Platform and used NT dollar deposit tokens to achieve DVP.
All three groups used technologies such as blockchain and smart contracts and connected to the Financial Flow Platform’s deposit token function in both primary and secondary markets. The findings demonstrated validation results and expected benefits such as reduced settlement time, near-24-hour trading, automated dividend distribution and repayment of principal and interest, lowered investment thresholds, and improved operational, supervisory, and fund utilization efficiency.
During the validation process, participating institutions also gathered numerous international case studies and experiences, discovering that many unresolved issues worldwide. Therefore, future efforts in promoting RWA tokenization in Taiwan still require a steady and progressive approach：
1. Efficiency:
Although several RWA token trading platforms and related mechanisms have been launched internationally, their transaction volumes remain relatively low compared with those of bonds and funds in traditional capital markets. Given that existing capital markets already offer highly efficient trading and clearing, the current test cases are all small-scale. Whether they will remain highly efficient when the market scales up remains to be seen.
2. Regulations:
Participating institutions have observed that in countries where RWA token trading has been developed, relevant laws and regulations are inconsistent. There are approaches such as enacting special laws, amending existing laws, and reinterpreting existing laws. Different regulatory adaptation approaches carry pros and cons, requiring a tailored approach that balances domestic needs with international compatibility.
3. The roles of market participants:
Taking tokenized RWA backed by securities as an example, global securities markets have evolved over 400 years (and Taiwan’s for 60 years) before the emergence of intermediaries such as securities firms, and Financial Market Infrastructures such as stock exchanges and central securities depositories. Transitioning from centralized capital markets to mechanisms using smart contracts, decentralization, or disintermediation represents a major structural change. Testing and adjustments will be needed to determine how traditional institutions should transform, how investors should change their investment models, and how market confidence and order can be maintained.
The FSC stated that the PoCs undertaken by the "RWA Tokenization Task Force" provided valuable experience for testing RWA token trading in Taiwan and have heightened industry awareness of international developments. In the future, the FSC will focus on three main areas: regulatory adaptation, the establishment of token trading platforms, and international connection：
1. Regarding regulatory adaptation, the FSC has commissioned the TDCC and the TPEx to conduct outsourced research on regulatory adaptation issues related to securities tokenization. In addition, the Financial Action Innovation Regulation Adaptation Platform’s Technological Innovation Working Group has decided to establish a "Digital Assets committee", which will be divided into two groups: RWA tokenization and stablecoins, to study regulatory adaptation issues. Scholars, experts, members of the RWA tokenization task force, and relevant bureaus and departments of the FSC will be invited to participate.
2. Regarding the establishment of an RWA token trading platform, the FSC has referred to international cases and planned to facilitate the joint formation of an RWA token trading platform by peripheral organizations and financial institutions. The FSC has also established the "RWA Token Platform Project Team" to promote the planning and establishment of the platform. The team has held three meetings so far and will continue to study the platform's operation and supervisory structure.
3. Regarding international connections, the FSC continues to encourage task force members to exchange insights on international trends through existing communication channels. Once the directions for regulatory adaptation and platform establishment are clear, the Commission will promptly promote cooperation plans with international institutions to strengthen the connection of Taiwan’s RWA tokenization efforts with the global market.
The POC results from all three groups demonstrated feasibility. However, the final report is not the end but rather an important starting point as it marks the transition from "feasible" to "actionable." The FSC will continue to coordinate closely with the Central Bank, the RWA Tokenization Task Force, and experts and scholars from the regulatory adaptation platform to ensure that future RWA tokenization mechanisms such as trading, settlement, and financial flow arrangements are aligned with international practices, jointly fostering greater innovation and development in Taiwan’s financial markets.
Contact Unit: Department of Development and Innovation
Tel: (02) 8968-0198
For inquiries, please email: https://fscmail.fsc.gov.tw
The task force comprises representatives from the Central Bank of the Republic of China, TDCC, and nine financial institutions — Cathay Securities, Cathay SITE, CTBC Bank, President Securities Corp., Taishin Bank, KGI Securities, Yuanta Financial Holdings, Taipei Fubon Bank, and KGI Bank. The supporting team consists of the Financial Information Service Co. (FISC), the Taiwan Stock Exchange, the Taipei Exchange (TPEx), and MasterLink Securities. The Task Force divided its work into three groups focusing on the tokenization of domestic bonds, foreign bonds, and funds respectively. A Proof-of-Concept (PoC) approach was adopted to assess the feasibility of promoting RWA tokens in Taiwan's financial market. Three groups delivered their mid-term (POC planning) reports in January 2025 and conducted validation testing through simulation, and the final (validation) reports were completed on September 25, 2025. The overview of the three groups’ validation testing is as follows：
1. Domestic Bond Group:
Built a proprietary blockchain and RWA trading platform to support (digital native) NT dollar–denominated corporate and financial bond tokens, providing services such as subscription, issuance, trading, dividend distribution, principal and interest repayment, and custody. The platform connected to the Central Bank Tokenized Financial Flow Platform (developed by the FISC, referred to hereafter as the " Financial Flow Platform"), using NT dollar deposit tokens to achieve delivery versus payment (DVP).
2. Foreign Bond Group:
Using a blockchain platform built by the TDCC, this group tokenized (digital twin) and fractionalized foreign bonds to provide services such as dividend distribution and repayment of principal and interest. It also developed a trading platform for investors and dealers, connecting to the Financial Flow Platform and using US dollar deposit tokens to achieve DVP.
3. Fund Group:
Using a blockchain platform built by TDCC, this group tokenized NT dollar money market funds and Taiwan equity funds (digital twin), providing subscription, redemption, and trading services. The platform connected to the Financial Flow Platform and used NT dollar deposit tokens to achieve DVP.
All three groups used technologies such as blockchain and smart contracts and connected to the Financial Flow Platform’s deposit token function in both primary and secondary markets. The findings demonstrated validation results and expected benefits such as reduced settlement time, near-24-hour trading, automated dividend distribution and repayment of principal and interest, lowered investment thresholds, and improved operational, supervisory, and fund utilization efficiency.
During the validation process, participating institutions also gathered numerous international case studies and experiences, discovering that many unresolved issues worldwide. Therefore, future efforts in promoting RWA tokenization in Taiwan still require a steady and progressive approach：
1. Efficiency:
Although several RWA token trading platforms and related mechanisms have been launched internationally, their transaction volumes remain relatively low compared with those of bonds and funds in traditional capital markets. Given that existing capital markets already offer highly efficient trading and clearing, the current test cases are all small-scale. Whether they will remain highly efficient when the market scales up remains to be seen.
2. Regulations:
Participating institutions have observed that in countries where RWA token trading has been developed, relevant laws and regulations are inconsistent. There are approaches such as enacting special laws, amending existing laws, and reinterpreting existing laws. Different regulatory adaptation approaches carry pros and cons, requiring a tailored approach that balances domestic needs with international compatibility.
3. The roles of market participants:
Taking tokenized RWA backed by securities as an example, global securities markets have evolved over 400 years (and Taiwan’s for 60 years) before the emergence of intermediaries such as securities firms, and Financial Market Infrastructures such as stock exchanges and central securities depositories. Transitioning from centralized capital markets to mechanisms using smart contracts, decentralization, or disintermediation represents a major structural change. Testing and adjustments will be needed to determine how traditional institutions should transform, how investors should change their investment models, and how market confidence and order can be maintained.
The FSC stated that the PoCs undertaken by the "RWA Tokenization Task Force" provided valuable experience for testing RWA token trading in Taiwan and have heightened industry awareness of international developments. In the future, the FSC will focus on three main areas: regulatory adaptation, the establishment of token trading platforms, and international connection：
1. Regarding regulatory adaptation, the FSC has commissioned the TDCC and the TPEx to conduct outsourced research on regulatory adaptation issues related to securities tokenization. In addition, the Financial Action Innovation Regulation Adaptation Platform’s Technological Innovation Working Group has decided to establish a "Digital Assets committee", which will be divided into two groups: RWA tokenization and stablecoins, to study regulatory adaptation issues. Scholars, experts, members of the RWA tokenization task force, and relevant bureaus and departments of the FSC will be invited to participate.
2. Regarding the establishment of an RWA token trading platform, the FSC has referred to international cases and planned to facilitate the joint formation of an RWA token trading platform by peripheral organizations and financial institutions. The FSC has also established the "RWA Token Platform Project Team" to promote the planning and establishment of the platform. The team has held three meetings so far and will continue to study the platform's operation and supervisory structure.
3. Regarding international connections, the FSC continues to encourage task force members to exchange insights on international trends through existing communication channels. Once the directions for regulatory adaptation and platform establishment are clear, the Commission will promptly promote cooperation plans with international institutions to strengthen the connection of Taiwan’s RWA tokenization efforts with the global market.
The POC results from all three groups demonstrated feasibility. However, the final report is not the end but rather an important starting point as it marks the transition from "feasible" to "actionable." The FSC will continue to coordinate closely with the Central Bank, the RWA Tokenization Task Force, and experts and scholars from the regulatory adaptation platform to ensure that future RWA tokenization mechanisms such as trading, settlement, and financial flow arrangements are aligned with international practices, jointly fostering greater innovation and development in Taiwan’s financial markets.
Contact Unit: Department of Development and Innovation
Tel: (02) 8968-0198
For inquiries, please email: https://fscmail.fsc.gov.tw
- Update： 2026-01-08
