In a major move that signals Vietnam’s accelerating embrace of Web3 infrastructure, Tether & Da Nang Forge Web3 has entered into a strategic partnership with the city of Da Nang to co-develop blockchain-based governance frameworks, sandbox environments, and educational programs. Under a newly signed Memorandum of Understanding (MoU), the collaboration aims to position Da Nang as a pioneering fintech and Web3 hub in Southeast Asia by building modern digital infrastructure, boosting blockchain governance, and promoting financial inclusion. This initiative reflects a shift in how cities engage with Web3, combining regulatory experimentation, education, and technological deployment to drive transformation at the municipal scale.
That said, this article explores the details of the Tether–Da Nang partnership, its significance in the Vietnamese Web3 landscape, the potential challenges ahead, and how it may influence the future of digital governance in the region.
What Is the Tether & Da Nang Forge Web3 Partnership?
Background and Purpose
Tether—the company best known for issuing the USDT stablecoin—is expanding its reach beyond traditional financial products into the domain of Tether & Da Nang Forge Web3 November 5, 2025, Tether signed a Memorandum of Understanding (MoU) with the People’s Committee of Da Nang City to jointly explore the design and deployment of blockchain governance solutions.
The stated goals of this partnership include:
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Developing blockchain-based governance frameworks for municipal services, public sector transparency, and peer-to-peer systems.
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Exploring the tokenisation of real-world assets (RWAs) within the city’s ecosystem and building sandbox environments to pilot new Web3 applications.
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Launching educational and training programs in collaboration with universities and research institutions to build local talent in blockchain, artificial intelligence (AI), and peer-to-peer technologies.
Scope & Regulatory Context
Because Vietnam’s national cryptocurrency regulation places certain restrictions on stablecoins, the partnership’s design is exciting. For example, while Resolution 05/2025/NQ-CP bans fiat-backed stablecoins nationwide, Da Nang enjoys exemptions under Resolution 222/2025/QH15 due to its status as an International Financial Centre (IFC) sandbox authority.
As part of that sandbox authority, Da Nang approved a pilot allowing USDT-to-VND conversions via a local payments solution called Basal Pay, for 36 months.
In that way, the Tether & Da Nang Forge Web3 partnership acts within a regulated experimental framework. Rather than bypassing regulation, it uses the limited regulatory exemptions and sandbox authority to test innovative infrastructure at the municipal scale.
Why It Matters: Strategic Significance for Web3 Infrastructure in Vietnam
Elevating Da Nang as a Web3 & FinTech Hub
Da Nang has long sought to become a centre of innovation in Vietnam. The partnership with Tether is a strong signal that the city is positioning itself not only as a regional FinTech hub but also as a Web3 infrastructure nexus. By engaging with a global blockchain/crypto company, Da Nang aims to attract smart investment, talent, and technology partners.
Furthermore, by leveraging its sandbox authority under the International Financial Centre (IFC) status, Da Nang can pilot experimental governance models, payment systems, and tokenisation projects that would otherwise face national regulatory constraints. This gives it a comparative advantage over other Vietnamese cities.
Advancing Blockchain Governance & Digital Inclusion
One of the core ambitions of this partnership is blockchain governance: designing frameworks that balance innovation with user protection, transparency, and accountability. By embedding governance into infrastructure from the outset, Da Nang could become a model for other regional governments considering similar Web3-powered services.
The inclusion of education and capacity-building initiatives is vital. Training students, public officers, and private sector participants in blockchain, peer-to-peer systems, and AI helps create a sustainable talent pipeline that supports long-term Web3 adoption rather than isolated pilot projects.
Likewise, the ability to tokenise real-world assets (such as property records, public infrastructure financing, or municipal services) may open new funding mechanisms and operational efficiencies in the city’s economy. That contributes to financial inclusion by reducing friction in payments, increasing transparency, and potentially lowering costs for underserved communities.
Alignment with Global Web3 Trends
Globally, there is increasing interest in municipal-level Web3 innovation. Examples include cities experimenting with blockchain-based tax payments, token incentives for sustainable development, or decentralised identity systems. By adopting similar ideas, Da Nang is aligning with this emerging trend, while adapting it to Vietnam’s regulatory and economic context.
Tether’s prior initiatives—such as Plan ₿ in Lugano (Switzerland), which explored municipal cryptocurrency payments—provide a precedent that the company now appears eager to replicate in Southeast Asia.
Thus, the partnership is not just local news—it may become an influential model for how emerging-market cities build Web3 infrastructure under regulatory supervision.
How the Partnership Works: Mechanisms & Implementation
Sandbox Framework & Pilot Projects
At the core of the Tether-Da Nang collaboration is the use of Da Nang’s International Financial Centre sandbox authority. Under that framework, the city can test pilot projects that may deviate from or extend beyond the national regulatory baseline.
For instance, the approved 36-month pilot through Basal Pay allows USDT-to-VND conversions within the sandbox, bypassing some of the national limitations on stablecoins.
These sandbox mechanisms enable practical testing of payment infrastructure, compliance frameworks, and customer-facing Web3 services before any full-scale rollout. That reduces risk for both regulators and developers, while offering real-world data to refine governance models.
Policy Development & Governance Design
Another critical strand of work is policy co-development. Tether and the People’s Committee of Da Nang will jointly design proposals related to licensing, compliance expectations, digital-asset risk management, and the tokenisation of physical or municipal assets.
These policy frameworks may include:
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Governance rules for peer-to-peer (P2P) systems
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Standards for transparency, auditing, and accountability in on-chain municipal services
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Risk-mitigation and fraud prevention procedures for blockchain-based transactions
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Token design and redemption mechanisms for real-world asset (RWA) tokens
This co-design process is intended to create legal and operational clarity, reducing friction for future Web3 applications while balancing innovation and public interest.
Education, Research & Talent Building
Perhaps the most sustainable component is the educational partnership with universities and research institutions across Vietnam. As revealed in the MoU, Tether will support the development of training modules on blockchain, artificial intelligence, and digital payment infrastructure.
These training programs—targeting students, public officers, and private developers—help ensure that Da Nang’s Web3 infrastructure is not just built, but maintained and evolved by competent local actors. It also encourages academic research into decentralised technologies, boosting the broader Vietnamese Web3 ecosystem.
Technological Integration & Financial Inclusion
Part of the implementation plan revolves around introducing Web3-enabled payment systems in both governmental and private sectors. That could include integrating blockchain-based payment rails in municipal services, enabling peer-to-peer payments, or even enabling decentralised identity or credentialing systems powered by distributed ledger technology.
By doing so, the infrastructure not only becomes innovation-forward but also supports financial inclusion: lowering transaction costs, increasing accessibility for underbanked populations, and improving the speed and transparency of services.
Potential Challenges & Risk Factors.
While the Tether–Da Nang partnership is ambitious and promising, it also faces several potential challenges:
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Regulatory Uncertainty
Although Da Nang has sandbox authority, any full rollout of services beyond the pilot stage would require alignment with national Vietnam regulations. Changes in policy at the central government level could limit expansion. -
Public Trust & Security
Blockchain-based governance and payment infrastructure must meet high standards for cybersecurity, privacy, and user protection. Any incident could erode confidence among citizens and businesses. -
Technical Complexity & Scalability
Building Web3 infrastructure is not straightforward. Scaling pilot systems for city-wide or regional adoption involves addressing issues such as latency, interoperability, transaction throughput, and integration with legacy systems. -
Adoption & Digital Literacy
Even with educational programs, citizen awareness and willingness to use blockchain-powered services may lag. Bridging the digital divide is nontrivial in any city, especially for vulnerable or less tech-savvy populations. -
Sustainability & Maintenance
Infrastructure is only as good as its ongoing governance, operational funding, and continuous updates. Ensuring that the systems remain up-to-date, secure, and well-governed beyond the initial rollout will require enduring commitment.
Nevertheless, by building governance from the outset, involving local academic institutions, and testing within sandbox frameworks, the partnership addresses many of these risks proactively.
Outlook: What Lies Ahead for Web3 Infrastructure in Da Nang
Over the coming 12–36 months, the Tether–Da Nang partnership could evolve in several ways:
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Expansion of Pilot Programs
If initial sandbox trials succeed, Da Nang may scale up digital-asset payments for other municipal services—such as licensing, permits, local tax or utility bills—and invite private-sector participants to onboard via Web3 rails. -
Development of Local Tokenisation Projects
Tokenising municipal assets (for example, public infrastructure bonds or development financing) could open new financing models and blur the line between public funding and decentralised finance (DeFi) approaches. -
Replication in Other Cities
Other Vietnamese municipalities could observe Da Nang’s progress and seek similar MoUs or sandbox-based Web3 governance models. That could spur a broader decentralisation of digital governance across Vietnam. -
Integration with National Strategy
As Vietnam develops its national strategy on digital assets, blockchain, and fintech regulation, learnings from Da Nang’s experiments may feed into national policy upgrades or reforms. -
Attracting Investment & Innovation
Success could position Da Nang to attract local and international Web3 ventures, accelerators, startups, and R&D labs that want to tap into regulatory openness, talent, and digital infrastructure.
In short, this partnership has the potential not only to transform how Da Nang manages and delivers public services but also to influence the future of Web3 infrastructure development across emerging markets.
Conclusion
The Tether-Da Nang partnership represents a bold experiment in municipal-level Web3 infrastructure. Through a combination of sandbox-enabled pilot programs, governance co-design, academic collaboration, and technological deployment, the city of Da Nang is positioning itself at the frontier of blockchain-enabled governance in Vietnam. While the journey ahead involves inherent risks—regulatory complexity, technical scalability, and adoption barriers—the deliberate approach built into the MoU offers a promising model for how emerging cities can adopt Web3 infrastructure with both innovation and responsibility in mind. As the pilot projects roll out and policies mature, the outcomes of this collaboration may well influence not only Vietnam’s regulatory future but also the broader blueprint for Web3-ready cities across Southeast Asia.
FAQs
Q: What is Web3 infrastructure and why is it important?
Web3 infrastructure refers to decentralised-ledger technology, peer-to-peer payment systems, tokenisation of assets, and programmable governance engines built on blockchain. It’s important because it enables transparency, reduces reliance on centralised intermediaries, and can improve accessibility and trust in digital services.
Q: Why was Da Nang chosen for this partnership and not another Vietnamese city?
Da Nang has been designated an International Financial Centre sandbox authority under Vietnamese law, which gives it regulatory flexibility to pilot innovative fintech and digital asset experiments. That makes it an ideal environment for testing Web3 infrastructure projects in a semi-regulated environment.
Q: Will citizens of Da Nang need to own cryptocurrency to benefit from this infrastructure?
Not necessarily. Many of the pilot systems are likely to abstract the underlying blockchain technology, so end-users may see familiar interfaces. Payment systems could convert between fiat (Vietnamese dong) and stablecoin behind the scenes. The goal is to improve service efficiency and inclusion rather than require technical expertise or crypto-holding behaviour.
Q: How will this partnership benefit local businesses and developers?
Local businesses may gain access to faster, lower-cost payment rails, and developers can build new Web3-enabled applications with regulatory support. Training programs and university collaborations also promote skill-building, which can help local startups and entrepreneurs tap into global blockchain ecosystems.
Q: What criteria will determine whether the pilot programs succeed and scale further?
Success will depend on metrics such as adoption rate among citizens and businesses, transaction volumes on pilot payment rails, system stability and security, compliance with risk frameworks, citizen satisfaction, and the ability to scale beyond sandbox conditions. If these criteria are met consistently, the city government and stakeholders may expand the scope of deployment.
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