Taiwan Set to Launch First Regulated Stablecoin by 2026

Taiwan plans to launch its first regulated stablecoin by late 2026, with financial institutions leading issuance. The currency peg—either to the Taiwan dollar or US dollar—remains undecided.

Taiwan is preparing to launch its first regulated stablecoin by the second half of 2026, pending the passage of the Virtual Asset Service Act and subsequent stablecoin-specific regulations. The Financial Supervisory Commission is drafting rules that will allow financial institutions to lead the initial issuance of the stablecoin, though it remains undecided whether the token will be pegged to the New Taiwan dollar or the US dollar. The choice of currency backing is significant, as a US dollar peg could bypass restrictions on exporting the Taiwan dollar offshore, while a Taiwan dollar-backed coin would be limited by current legal frameworks. The regulatory framework under development emphasizes full reserve backing, strict segregation of assets, and domestic custody requirements. Several local banks are already preparing for the new era, with some expressing interest in launching Taiwan dollar-pegged coins and others collaborating with international stablecoin issuers. The initiative is expected to enhance financial stability, streamline transactions, and position Taiwan as a leader in regulated digital finance in Asia.