Table of Contents
Bank of Taiwan said it shared new progress on its “Precious Metals Business RWA” pilot at FinTech Taipei 2025. The bank presented interim results from a cross-bank proof of concept focused on two use cases: interbank settlement and interbank physical withdrawal of gold. The update follows months of testing and aims to finish preliminary validation by the end of 2025.
In its English announcement, the bank outline progress, noting eight partners: Land Bank of Taiwan, Hua Nan Bank, Chang Hwa Bank, Shanghai Commercial & Savings Bank, Taiwan Business Bank, Bank SinoPac, CTBC Bank, and NEXT Bank. The project uses simulated tokens in a test network to compare automated smart-contract settlement with manual reconciliation.
Bank of Taiwan added that a tokenized digital certificate is being tested for physical withdrawals, with goals that include transaction authenticity, privacy protection, and real-time ledger sync. The forum session highlighted that early results point to faster interbank clearing and simpler audit trails, while consumer-facing products would keep familiar channels like gold passbooks.
“The pilot will study the full token life cycle — minting, transfer, withdrawal, and burn — and help form industry standards and best practices,” say details Lu Chien-Chih, Director of the Innovation Lab at Bank of Taiwan. He said shared testing across banks can build a stronger base for future policy and market use.
The work aligns with Taiwan’s wider push on tokenization. In September, the FSC’s RWA Tokenization Task Force completed technical validation and now turns to rules and platforms; the regulator detail task force, saying the next phase will focus on regulatory adaptation and market links (FSC Taiwan). If timelines hold, Bank of Taiwan’s pilot could inform compliant models for precious-metals settlement and withdrawals across the market.
