Taiwan's yuan activities exploded in the first seven months of this year, paving the way for it to stand alongside Hong Kong and Singapore to become yet another offshore center for the currency.

British bank Standard Chartered Plc said on Monday that yuan-denominated payments through Taiwan have grown 420 percent year-on-year, demonstrating Taiwan's emergence as an important yuan post. As of July, the amount of payments was almost half the size of Singapore's, up from a mere 17 percent in December 2012.

Yuan deposits in Taiwan have also taken off, amounting to 76.9 billion yuan ($12.5billion) by the end of July. Yuan deposits now account for 11.8 percent of the total non-Taiwanese currency deposits in the province, up from 6.2 percent in February, according Standard Chartered.