INTERVIEW: AI pushes banks beyond traditional processing

BEYOND TRADITION: The rise of digital assets is reshaping custodians from passive asset holders into trusted providers of digital market infrastructure, Standard Chartered said

• By Crystal Hsu / Staff reporter

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Artificial intelligence (AI), real-time payments and digital assets are pushing corporate treasury management beyond traditional transaction processing, giving companies faster visibility over cash and liquidity while enabling more automated and programmable payments, Standard Chartered Bank said.

The shift is creating new opportunities for Taiwan as it builds a regulatory framework for digital assets, with clearer rules for tokenized securities and stablecoins needed to support the development of the market, according to Standard Chartered Financing and Securities Services regional head Pierre Mengal.

“The rise of digital assets and tokenized securities is reshaping traditional custodians from passive asset holders into trusted providers of digital market infrastructure,” Mengal said during an one-on-one interview on Wednesday after attending the bank’s treasury forum in Taipei.

Standard Chartered Financing and Securities Services regional head Pierre Meangal poses in an undated photo.

Photo: courtesy of Standard Chartered

Standard Chartered identified six trends shaping the future of corporate treasury: real-time treasury management, programmable liquidity, the use of AI in treasury operations, and the growing commercial use of tokenization and digital assets.

These technologies are allowing companies to extract more value from payment data while making resilience a competitive advantage, the bank said.

Digital assets are gradually moving from an emerging financial technology toward practical applications in payments, custody and treasury management, Mengal said.

Their integration with real-time payments and new financial infrastructure could further accelerate the move toward more automated and connected financial operations, he said.

Taiwan took a step toward developing its digital-asset market in June when the legislature passed the Virtual Asset Services Act (虛擬資產服務法), establishing a legal framework covering virtual-asset service providers, custody, cybersecurity, asset segregation and internal controls.

The next priority should be regulatory clarity for tokenized securities and stablecoins, including rules governing ownership, custody, settlement, taxation and accounting, Mengal said.

Taiwan’s established capital-market infrastructure could provide a strong foundation for banks, custodians and securities firms to support the issuance, custody and settlement of tokenized assets, he said.

The market could also explore the use of stablecoins and tokenized deposits for cross-border payments, securities settlement and corporate treasury management, Mengal said.

“Digital financial transformation is redefining the growth path of companies, allowing them to gain more flexible ways to manage cross-border funds,” he said.

Such tools could help Taiwanese companies expanding overseas manage cross-border funds more efficiently while strengthening operational resilience, he said.

The growing use of AI, real-time data and digital assets is also changing how companies view resilience. Rather than being limited to risk management, resilience is increasingly becoming a strategic advantage as businesses seek to respond more quickly to changes in liquidity, payments and operating conditions, he said.

Standard Chartered has expanded its digital-asset capabilities in the past few years, covering custody, trading, tokenization and stablecoins, he said.