Cathay United Bank Obtains Approval from the Financial Supervisory Commission to Pilot Virtual Asset Custody Services
Cathay United Bank has received approval from the Financial Supervisory Commission (FSC) to become one of the first banks in Taiwan to pilot virtual asset custody services, providing high-net-worth clients in Taiwan with bank-grade security and compliance services. This marks the official entry of digital assets into Taiwan’s traditional financial sector.
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On August 7, 2025, Taipei time, Cathay United Bank announced it has obtained approval from the FSC to be one of the first banks in Taiwan to pilot virtual asset custody services. This approval signifies that traditional finance is officially opening its doors to incorporate digital assets such as Bitcoin (BTC) and Ethereum into a bank-grade custody system, with the initial service targeting high-net-worth individual clients.
Financial Milestone: A New Option for High-Net-Worth Clients
In the past, virtual assets in Taiwan were primarily managed by Virtual Asset Service Providers (VASP). Investors wishing to ensure the safety of their digital assets often had to rely on overseas cold wallets or exchanges. With this approval, Cathay United Bank finally brings an “onshore” bank-grade custody solution to the market. This move fills the gap for high-net-worth individuals in virtual asset allocation and secure custody, adding new tools to private banking services.
Cybersecurity and Compliance
Cathay United Bank places private keys in institution-grade cold wallets and employs multi-signature authorization, similar to the multi-layered access control of a physical vault. The bank explains that to meet anti-money laundering requirements, it extends KYC (Know Your Customer) to KYA (Know Your Asset) and KYT (Know Your Transaction), utilizing on-chain financial flow analysis to track the source and destination of each transaction. Coupled with multi-signature, cold storage, and AI-driven fraud detection, this creates a comprehensive defense line.
