To explore the preparations needed for the promotion of real world asset (RWA) tokenization in Taiwan, the Financial Supervisory Commission (FSC), in collaboration with the Taiwan Depository & Clearing Corporation (TDCC, which is the convenor of the FinTech Co-creation Platform's "RegTech and Research Application Group"), and six financial institutions, has established the "Real World Asset (RWA) Tokenization Task Force." The kick-off meeting was held on June 13, 2024.

The FSC stated that real world assets include financial assets such as stocks and bonds, physical assets such as real estate and precious metals, and intangible assets like carbon credits. RWA tokenization involves using technologies such as blockchain, cryptography, or smart contracts to represent these assets in the form of digital tokens, facilitating subsequent transactions or services. Internationally, tokenized real world assets are widely believed to offer potential advantages such as 24/7 trading, cross-border and cross-time-zone transactions, lower investment thresholds, increased operational efficiency, real-time settlement, and enhanced liquidity and transparency. However, there are also challenges related to supervision, regulation, and interoperability. To explore the preparations needed for promoting RWA tokenization in Taiwan and to advance fintech in a more forward-looking and comprehensive manner, the FSC, in collaboration with the TDCC and six interested financial institutions (Taishin Bank, Taipei Fubon Bank, CTBC Bank, Cathay Securities, Cathay SITE, and Yuanta Financial Holdings), has established the "RWA Tokenization Task Force" to jointly study related initiatives.

The FSC indicated that to ensure the smooth implementation of the various tasks of the "RWA Tokenization Task Force," it will involve staff from relevant bureaus in addition to its Financial Technology Development and Innovation Center. This is to help understand the professional knowledge and practical operations of RWA tokenization, as well as to discuss policies and regulations that may be involved. The parties have already reached a consensus on the operational methods of the "RWA Tokenization Task Force." The plan is to select two assets as tokenization targets, with members meeting around every three to four weeks. Besides discussing tokenization methods, the task force will also analyze the custody and trading of assets, and etc. The goal is for participating financial institutions to propose Proof of Concept (POC) initiatives and apply for business trials or innovative experiments (i.e. regulatory sandbox experiments).

The FSC emphasized its commitment to the development of fintech, particularly in light of the rapid advancements in Web3 and its related applications, such as tokenization and decentralized finance (DeFi). International organizations and other countries have already proposed related regulatory recommendations and development projects. To align with international financial market trends and enhance regulatory effectiveness, the FSC expects that through the operation of the "RWA Tokenization Task Force," it can strengthen dialogue with industry players and related entities, and focus on innovative technologies, models, and applications, thereby promoting the development and innovation of fintech.


Contact: Financial Technology Development and Innovation Center
Tel: (02) 8968-0088
If you have any questions, please send an email to: https://fscmail.fsc.gov.tw