Catenaa, Thursday, September 04, 2025-Shares of Bank of China Hong Kong surged 6.7% Monday after reports revealed the state-owned lender is preparing to apply for a stablecoin issuer license under Hong Kong’s new regulatory framework, sparking speculation it could rival China’s digital yuan.
The bank has formed a dedicated task force to explore stablecoin issuance, with market sources indicating preparations for an early application.
The move follows the Hong Kong Monetary Authority’s call for license submissions under the Stablecoin Bill, effective August 1, which requires fiat-backed stablecoin issuers to meet strict reserve, audit, and anti-money laundering standards.
Over 40 companies have expressed interest in obtaining licenses, including JD.com, Ant Group, Standard Chartered, and Circle.
Regulators have cautioned that expressions of interest do not guarantee approval, and only a limited number of licenses will initially be issued. Hong Kong aims to establish itself as a regulated stablecoin hub amid a $261 billion global market surge.
Bank of China’s potential entry is notable given China’s ongoing digital yuan rollout. Analysts suggest a licensed commercial stablecoin could provide a regulated, internationally accessible complement to the central bank’s digital currency, testing cross-border utility.
The HKMA continues consultations on technical and risk requirements, while investors are urged to verify credentials through official channels.
