The Bitcoin price surge following Donald Trump’s election win has lifted investor sentiment, but the real breakthrough for digital assets lies not in market highs—it’s in real-world adoption. And that requires collaboration between innovators and institutions. At the heart of this transformation is traditional finance, undergoing a quiet but profound evolution.
Simon Dai, Deputy General Manager of the Digital Financial Services Division at Far Eastern International Bank (FEIB), believes banks should act as trusted anchors in this new ecosystem. Rather than taking sides, he describes the bank’s role using an architectural metaphor: the "mortise and tenon" joint—a sturdy connector that binds structural elements without dominating them.
“Banks are the reliable backbone for users. In the world of crypto, we’re like the joint that holds two beams together—strong, silent, and essential.”
The Early Stage of Taiwan’s Crypto Market
Simon stresses that Taiwan’s cryptocurrency landscape is still in its infancy. Unlike mature markets such as the U.S. or Singapore, local players are largely exploring rather than competing.
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“Market fragmentation happens when players build competitive moats too early,” Simon explains. “If everyone starts picking sides now, we’ll cap our own growth. Right now, cooperation matters more than competition.”
This perspective comes amid notable industry moves—such as Far EasTone Telecom investing in MaiCoin, and Taiwan Mobile launching its own crypto exchange. Both telecom giants bring vast user bases and experience in loyalty programs and payment systems, leading some to interpret these actions as corporate “battlegrounds” in the Web3 era.
But Simon sees it differently.
“Yes, they have customers and platforms—so conversion makes sense on paper. But calling this ‘taking sides’? That’s premature. Unless Taiwan’s market is fully mature, choosing camps is short-sighted. We’re still in the启蒙 (enlightenment) phase. What we need isn’t rivalry—it’s open-minded collaboration to build a stronger ecosystem.”
Banking as a Service Enabler in Crypto
Rather than chasing market share, FEIB focuses on expanding the pie. The bank has partnered with several local crypto exchanges, managing fiat liquidity while exploring deeper integrations between traditional finance and blockchain innovation.
At its core, banking is about service—not control.
“What can banks do for crypto? Simple: provide services wherever there’s demand. As long as it’s within our license and compliance framework, we aim to support every legitimate need. It doesn’t matter if the client is big or small today—tomorrow’s crypto finance could be massive.”
Traditional banking operates under strict regulatory boundaries: deposits, loans, derivatives, insurance, securities—all require specific licenses. Yet crypto blurs these lines, aiming to recreate all financial functions on-chain.
Rather than resist, Simon embraces this disruption.
“Crypto moves ahead of regulation—and that’s sometimes healthy. In Taiwan, rules are rigid: you need a license for each function. But crypto merges everything. That tension creates pressure for new regulations and new licensing models. Look at XREX—they used a payment framework to offer crypto services. That’s innovation pushing boundaries in the right way.”
Could banks one day accept crypto for deposits, loans, or derivatives? Simon doesn’t rule it out.
“We’re already exploring these possibilities,” he says. “Even if they don’t materialize immediately, each experiment adds value to the entire industry.”
Compliance Meets Innovation: The Challenge of Crypto Collateral
One of the most pressing questions in institutional crypto adoption is collateralization.
Many clients want to use Bitcoin or stablecoins as loan collateral—but volatility and custody issues make this complex.
“If someone wants to pledge BTC,” Simon notes, “risk management might only accept 50% of its current market value due to price swings. With stablecoins like USDT or USDC? Maybe 70% is feasible—but then comes the bigger issue: where do the assets live?”
Regulatory clarity is lacking here.
“If tokens sit on-chain, regulators may not recognize them as ‘held by the bank.’ We’d need compliant custody solutions—or even develop tokenized deposit contracts. But issuing such instruments touches on ‘token issuance rights,’ which brings legal complications.”
This illustrates the delicate balance banks must strike: innovate within bounds, test new models, and help shape future regulations through practical experience.
AI-Powered Risk Management: From Theory to Practice
Another major hurdle is risk control—especially anti-money laundering (AML) and fraud detection.
“Crypto’s dark past includes bad actors exploiting anonymity,” Simon admits. “But now that we’re stepping into regulated territory, those who pretend to innovate while doing harm must be filtered out.”
Just as the internet survived the dot-com crash to thrive, crypto must undergo its own cleansing phase.
Traditional risk tools fall short in a high-volatility, pseudonymous environment. So FEIB is turning to AI and big data.
“We’re using machine learning to analyze user behavior, wallet patterns, and market activity to flag suspicious transactions in real time.”
While specifics remain confidential for security reasons, Simon confirms these systems are already active.
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“This isn’t sci-fi—it’s today’s reality. Regulatory tech for crypto is becoming a market in itself.”
Building the Ceiling: RWA and Mass Adoption
As the conversation winds down, Simon returns to his “mortise and tenon” analogy.
Why that metaphor?
“Because connection is everything,” he says with a smile. “Investors, exchanges, banks—we’re all beams supporting the structure. Banks bring regulatory know-how and risk expertise. We help bridge innovators and regulators.”
Real-World Assets (RWA) tokenization excites him most.
“RWA is one of crypto’s most promising use cases. But ask the hard questions: What assets work best? Which ones sell? Can retail investors access them? Progress takes patience—but also courage to move forward.”
True financial transformation won’t happen overnight. But with strong connectors in place, the ceiling for crypto adoption can rise higher than ever.
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Frequently Asked Questions (FAQ)
Q: Can Taiwanese banks currently accept cryptocurrency as collateral for loans?
A: Not directly at scale yet. Banks face regulatory and custody challenges. However, some institutions are exploring partial valuation of stablecoins or Bitcoin with significant haircuts and secured custody arrangements.
Q: Is Far Eastern Bank planning to launch its own cryptocurrency or digital wallet?
A: No official plans have been announced. Their current focus is on enabling services for licensed crypto platforms and supporting compliant innovation within existing regulatory frameworks.
Q: How does AI improve crypto transaction monitoring compared to traditional methods?
A: AI analyzes behavioral patterns, wallet linkages, and transaction velocities in real time—detecting anomalies that rule-based systems miss—making AML and fraud prevention faster and more accurate.
Q: What role do telecom companies play in Taiwan’s crypto ecosystem?
A: Telecom firms like Far EasTone and Taiwan Mobile leverage their massive user bases, identity verification systems, and payment infrastructures to onboard users into crypto services—accelerating mainstream adoption.
Q: Why is collaboration more important than competition in Taiwan’s current crypto stage?
A: The market is still nascent. Fragmentation limits growth. Shared infrastructure, standards, and regulatory dialogue benefit all stakeholders more than isolated silos ever could.
Q: What are Real-World Assets (RWA) in crypto, and why do they matter?
A: RWAs are physical or traditional financial assets (like real estate or bonds) tokenized on blockchain. They bring tangible value to DeFi, increase transparency, and open new investment channels for global investors.
Core Keywords:
crypto-friendly banking, digital asset adoption, AI risk management, real-world assets (RWA), blockchain compliance, cryptocurrency collateral, financial innovation