Taiwan Mobile's subsidiary TWEX partners with Kaia to expand Taiwan's Web3 ecosystem, leveraging a combined user base of 250 million and focusing on DeFi and fiat-crypto solutions.

Executive Summary

Taiwan Mobile, a leading telecommunications operator, is expanding its Web3 presence through its subsidiary TWEX and a new partnership with Kaia, a Layer-1 blockchain platform created by the merger of Kakao and LINE's blockchain efforts. The collaboration aims to grow Taiwan's Web3 ecosystem by focusing on community development, blockchain infrastructure, fiat-crypto on/off ramps, and DeFi development, potentially reaching a combined user base of over 250 million.

The Event in Detail

Taiwan Mobile's subsidiary, Fusheng Digital, launched the Taiwan Virtual Asset Exchange (TWEX) on May 22, marking the entry of a major corporate group into Taiwan's virtual asset space. TWEX emphasizes security, ease of use, and small-amount purchases, allowing users to start investing with as little as NT$100 (US$3.33). Simultaneously, Taiwan Mobile signed a Memorandum of Understanding (MOU) with Kaia, a Layer-1 blockchain formed by the merger of Kakao (Klaytn) and LINE (Finschia), to jointly develop Taiwan's Web3 market.

Market Implications

The partnership between Taiwan Mobile and Kaia aims to leverage Taiwan Mobile's brand influence and Kaia's Web3 ecosystem to expand the user base in Taiwan and explore Web3 hybrid financial solutions. The collaboration focuses on fostering a vibrant developer and user environment, enhancing local Web3 infrastructure for next-generation DApps, accelerating interoperability between fiat and digital assets, and building a robust DeFi ecosystem. This move aligns with Taiwan's regulatory developments, including the draft "Virtual Asset Service Act," which seeks to strengthen the operation and development of virtual asset businesses in Taiwan.

Expert Commentary

Taiwan Mobile副総経理 兼 Fusheng Digital総責任者 Luke Hanのコメント 「今回のパートナーシップは、台湾においてWeb3の潜在力を最大限に活用することに焦点を当てています。KAIAのWeb3技術とTaiwan Mobileの広範な市場プレゼンスを

Fusheng Digital chairman, Jamie Lin, stated that currently, only about 5% of Taiwan’s population participates in virtual asset investments, indicating significant market potential. Lin emphasized that TWEX integrates group resources, providing full oversight from fund custody to technical protection.

Broader Context

Kaia, launched in August 2024 by Kakao and LINE, aims to create a leading Web3 ecosystem in East Asia. With a potential user base exceeding 250 million, Kaia plans to lower the entry barrier for users through the "Kaia Wave" plan, investing $10 million to support developers and attract users via Web2 touchpoints like LINE Mini DApps. KuCoin has also partnered with the Vietnam Blockchain and Digital Assets Association (VBA) and 1Matrix Joint Stock Company, aligning with Vietnam's National Blockchain Strategy (2025–2030) to accelerate blockchain development in Southeast Asia, indicating a broader trend of Web2 companies and established tech firms venturing into the Web3 space in Asia.