KGI Bank is the "first" to sign a contract with Tether, officially launching the era of stablecoins in Taiwan.

KGI Bank has become the first bank in Taiwan to sign a memorandum of cooperation with Tether, the world's largest stablecoin issuer. Both parties will jointly explore cross-border settlement and virtual asset applications, marking the formal entry of Taiwan's financial industry into the Web3 world and unveiling the local stablecoin ecosystem.

KGI Bank takes the lead in layout, partnering with Tether to explore new models of cross-border finance

KGI Bank announced on October 8 that it has officially signed a memorandum of understanding (MOU) with Tether, the world's largest issuer of US dollar stablecoins, to jointly promote innovative development in cross-border finance and virtual asset applications. This marks the first cooperation between a bank in Taiwan and an international stablecoin giant, symbolizing a key step forward for traditional finance and the crypto world, and laying the groundwork for the future of local stablecoin or related digital financial applications in Taiwan.

KGI Bank pointed out that this collaboration is part of a forward-looking strategic layout. In the future, both parties will establish a dedicated team to conduct research on issues such as cross-border Settlement, virtual asset compliance, and financial technology applications, and will cooperate with regulatory openness to promote more diverse application scenarios.

KGI Bank × Tether Collaboration Core Highlights

Chairman Yang Wenjun stated: "Kaohsiung Bank aims to be a bridge between traditional finance and virtual assets, focusing on innovation and compliance, and hopes to connect Taiwan's financial industry with the international market."

Currently, the cooperation between both parties is still in the preliminary stage. After the relevant regulations for virtual assets are improved, KGI Bank will be the first to launch specific services, providing more flexible funding solutions for corporate and wealth management clients.

The Layout Journey of KGI Bank in the Web3 Field

KGI Bank's investment in blockchain applications is not a temporary whim, but the result of a long-term strategic layout:

Early Layout (Since 2018)

Be the first to launch a TWD trust plan for the trading platform.

Collaborating with the two major exchanges in Taiwan to issue the "KGI Coin Enjoy Card", allowing users to exchange points for cryptocurrency.

Become one of the first traditional banks to support the cryptocurrency industry.

Regulatory Pilot Phase (End of 2023)

Approved by the Financial Supervisory Commission to become one of the first four institutions for "Virtual Asset Custody Business Pilot".

alongside China Trust, Cathay United Bank, and Federal Bank

New Milestone in International Cooperation (October 8, 2025)

Signed MOU with the world's largest stablecoin issuer Tether

Become the first bank in Taiwan to cooperate with international stablecoin giants.

Virtual asset regulation loosening, banks shift from bystanders to promoters

With the Financial Supervisory Commission launching the "Virtual Asset Custody Business Pilot Program" at the end of 2023, traditional banks are beginning to inject trust mechanisms into the cryptocurrency market by providing high-security level custody services. KGI Bank not only offers virtual asset custody services but also demonstrates a long-term commitment to blockchain applications.

The collaboration between KGI Bank and Tether is seen as a positive response to the draft of the "Virtual Asset Service Act" promoted by the Financial Supervisory Commission. Using stablecoin as a medium for cross-border Settlement helps reduce foreign exchange costs and improve transaction efficiency.

Three Major Use Cases of Taiwan Stablecoin

1. Cross-border Payment and Currency Exchange

· Replace the traditional SWIFT system

· Instant Settlement, reducing exchange costs

· 24/7 operation

2. Corporate Fund Management

· Multinational corporations can allocate funds more flexibly

· Reduce foreign exchange hedging costs

· Simplify accounting processes

3. Digital Asset Custody

· Bank-level security custody

· Custody services under a compliance framework

· Connect traditional finance with the crypto world

In the future, if the regulatory environment opens up, banks are expected to use "regulated stablecoin" as the core to build a digital payment infrastructure with Taiwan's characteristics, allowing stablecoins to no longer be merely a tool for circulation within the cryptocurrency industry, but to become a financial option in the real economy.

Taiwan's financial industry welcomes a new starting point for Web3, and the issuance of stablecoins is anticipated

Tether has been actively expanding its global cooperation landscape in recent years, maintaining its $USDT stablecoin's dominance in the international market, and discussing regional settlement and asset tokenization applications with multiple governments and financial institutions.

For Taiwan, the signing of the MOU with KGI Bank symbolizes the formal entry of Taiwan's stablecoin into the traditional financial system, potentially becoming a core tool for banks' cross-border services and digital asset custody in the future.

Key Milestones in the Development of Taiwan's Stablecoin Ecosystem

Policy Aspect:

· The Financial Supervisory Commission promotes the draft of the "Virtual Asset Service Act"

· Virtual Asset Custody Business Pilot Program Launched

· The regulatory framework is gradually becoming clearer.

Industry Aspect:

· Four banks including KGI Bank have been approved to trial custodial services.

· Deepening cooperation between exchanges and banks

· The integration of traditional finance and the cryptocurrency industry is accelerating.

Market Aspect:

· The demand for cross-border payments by enterprises is increasing.

· Wealth management clients show increased interest in digital assets

· Web3 startups are thriving

KGI Bank emphasizes that the future cooperation directions between both parties include: promoting innovation in cross-border payments and currency exchange, supporting the development of innovative technology companies, and exploring the potential of blockchain applications in asset management and financial product design.

Can Taiwan's stablecoin seize a key position in Asia?

Industry analysis indicates that if this collaboration is successfully implemented, it will not only change the role of banks in cryptocurrency finance but may also allow Taiwan to secure a key position in the Asian stablecoin competition.

Taiwan's Competitive Advantage:

· A sound financial regulatory system

· Highly digitized payment environment

· Active cryptocurrency user community

· The government's open attitude towards financial innovation

Challenges Faced:

·The regulatory environment still needs further clarification.

· A cross-departmental coordination mechanism needs to be established

· International competition is becoming increasingly fierce.

From policy deregulation to bank participation, Taiwan's stablecoin ecosystem is transitioning from concept to practice. This step may very well be the starting point of a new financial era.