Cathay United Bank Obtains Approval from the Financial Supervisory Commission to Pilot Virtual Asset Custody Services
Cathay United Bank has secured approval from the Financial Supervisory Commission (FSC) to pilot virtual asset custody services, bringing bank-level security and compliance services to high-net-worth clients in Taiwan, symbolizing the formal entry of digital assets into Taiwan’s traditional financial sector.
(Background: Is a stablecoin just a “digital EasyCard”? A cognitive warfare that stifles Taiwan’s crypto future)
(Context: The U.S. imposes a 20% tariff on Taiwan; do you know how much Taiwan imposes on the U.S.? It might not be as low as you think.)
August 7, 2025, Taipei Time
Cathay United Bank announced that it has received approval from the FSC, becoming one of the first banks in Taiwan to pilot virtual asset custody services. This approval symbolizes the traditional finance sector officially opening its doors to include digital assets such as Bitcoin (BTC) and Ethereum within a bank-level custody system, with the initial services targeting high-net-worth individual clients.
Financial Milestone: A New Option for High-Net-Worth Clients
Previously, virtual assets in Taiwan were primarily managed by Virtual Asset Service Providers (VASP). If investors wanted to ensure the safety of their digital assets, they often had to rely on overseas cold wallets or exchanges. With Cathay United Bank’s approval, the market has finally welcomed an “onshore” bank-level custody solution. This move fills the gap for high-net-worth individuals regarding virtual asset allocation and secure custody, while also adding new tools to private banking services.
Cybersecurity and Compliance
Cathay United Bank stores private keys in institutional-grade cold wallets and employs multi-signature authorization, akin to the multi-layer access control of a physical vault. The bank explained that to meet anti-money laundering requirements, it extends Know Your Customer (KYC) to Know Your Assets (KYA) and Know Your Transactions (KYT), monitoring the source and destination of every transaction through on-chain cash flow analysis. Coupled with multi-signature, cold storage, and AI-driven fraud detection practices, a comprehensive defense line is established.
