SinoPac Proposes Shared Digital-Asset Custody Platform for Taiwan Banks

Taiwanese financial institutions are exploring digital-asset custody as the government advances its Asian asset-management hub initiative. Building proprietary wallet, cybersecurity, compliance and risk-control systems can be costly for individual lenders. SinoPac Financial Holdings has proposed a tiered custody model under which banks would share core infrastructure while retaining responsibility for customer assets, potentially lowering entry barriers and spreading fixed costs across participating institutions.

SinoPac recently presented the proposal at a Financial Supervisory Commission advisory meeting, suggesting that several banks jointly fund a custody platform or outsource its construction to a specialist provider. No investment amount or launch date was disclosed. The FSC said the arrangement could proceed without legislative amendments and appeared feasible if each bank remained fully accountable for outsourced operations. The regulator said it would continue assessing how the framework could be implemented.