Taiwan Explores Gold Tokenization to Modernize Precious Metals Market

Taiwan plans to modernize its gold market through gold tokenization, using blockchain technology to improve liquidity, efficiency, and investor access

Taiwan is moving toward a more digital future for its precious metals industry by exploring gold tokenization, a blockchain-powered initiative designed to improve trading efficiency, liquidity, and accessibility in the country's gold market.

The proposal was announced during the 2026 Precious Metals RWA Tokenization Forum hosted by the Bank of Taiwan, where financial leaders and industry experts gathered to discuss the role of blockchain in transforming traditional financial systems.

Bank of Taiwan Unveils Tokenization Initiative

Speaking at the forum, Bank of Taiwan Chairman Ling Jong-yuan revealed that the central bank is evaluating the use of blockchain technology to support gold tokenization as part of a broader effort to modernize the country's financial infrastructure.

Taiwan holds approximately 423.94 tons of gold reserves, making it the fourth-largest gold reserve holder in Asia as of the fourth quarter of 2025. Ling noted that gold will serve as the starting point for the country's exploration of tokenized real-world assets, with the possibility of expanding the concept to other precious metals in the future.

Blockchain Expected to Improve Market Efficiency

Industry participants highlighted the potential benefits of blockchain technology in reshaping Taiwan's gold market. By enabling gold tokenization, blockchain can reduce transaction costs, improve liquidity, and eliminate many of the storage and settlement challenges associated with physical gold ownership.

Tokenized gold allows investors to purchase and trade fractional ownership of the asset, making the market more accessible to a wider range of participants while increasing trading flexibility.

Supporters of the initiative believe these advantages could strengthen Taiwan's position as a leading precious metals market in the region.

Regulatory Frameworks Remain Critical

While attendees broadly supported the initiative, many emphasized that a strong regulatory foundation will be essential for its success. Experts pointed to the need for secure custody systems, compliance mechanisms, legal clarity, and institutional reforms before gold tokenization can be adopted on a larger scale.

Ling acknowledged these concerns, stressing that cooperation between government agencies, the central bank, regulators, and private-sector organizations will be necessary to ensure the initiative develops responsibly.

Transforming the Role of Banks

According to Ling, tokenized assets could fundamentally change how financial institutions operate. Traditionally, banks have acted as intermediaries that hold and manage assets on behalf of customers.

However, blockchain technology may allow banks to become active participants in a digital financial ecosystem, supporting asset issuance, custody, and trading within decentralized networks.

A Step Toward the Future of Finance

As countries around the world continue exploring real-world asset tokenization, Taiwan's latest initiative signals its commitment to embracing financial innovation. If successfully implemented, gold tokenization could not only modernize the country's precious metals market but also pave the way for broader adoption of blockchain-based financial products in the years ahead.