Bank of China Eyes Stablecoin License as Hong Kong Tightens Digital Asset Rules
The Bank of China’s Hong Kong-listed shares jumped 6.7% to HKD$37.58 on Monday amid reports that its Hong Kong subsidiary may soon apply for a stablecoin issuer license. According to the Hong Kong Economic Journal, the bank has assembled a dedicated task force to assess the viability of entering the stablecoin market.
Although the Bank of China declined to comment directly, executives recently told investors that the institution is actively researching digital asset applications and their risk management frameworks.
The speculation comes just weeks after Hong Kong launched its stablecoin licensing regime on August 1. The rules, overseen by the Hong Kong Monetary Authority (HKMA), impose stringent requirements on reserve backing, redemption guarantees, client fund segregation, anti-money laundering measures, and operational vetting. The framework mirrors the global push for regulatory clarity, arriving soon after the U.S. passed its first federal stablecoin law, the GENIUS Act.
Hong Kong’s proactive stance has already drawn interest from major banks like Standard Chartered and Chinese tech giants such as JD.com and Ant Financial. JD.com’s founder Richard Liu said in June that stablecoins could cut cross-border transfer costs, initially for B2B payments before scaling to consumers. He emphasized their potential to accelerate settlements and provide a hedge against currency volatility, particularly in emerging markets.
Still, regulators are urging caution. In mid-August, both the HKMA and the Securities and Futures Commission (SFC) warned investors about sudden stock price swings tied to speculation over licensing applications, noting that these movements often follow media reports and social media chatter rather than confirmed filings.
With the Bank of China now at the center of these discussions, attention is focused on whether the state-backed lender will officially pursue a license, potentially reshaping the competitive landscape for stablecoins in Asia.