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Bank of China (Hong Kong) Plans to Apply for Stablecoin Issuer License

Bank of China (Hong Kong) Plans to Apply for Stablecoin Issuer License

Reports suggest Bank of China Hong Kong is preparing a stablecoin license application as Hong Kong enforces its new regulatory framework, drawing heavy interest from institutions and investors amid global market growth.

Fact Check
The statement is strongly supported by multiple recent news reports (Sources 1, 2, 9, 10) that explicitly state Bank of China (Hong Kong) plans to apply for a stablecoin issuer license. This is corroborated by an older report on market rumors (Sources 4, 12) and analysis of BOCHK as a strong candidate (Sources 3, 11). The broader context provided by the Hong Kong Monetary Authority (Sources 6, 13) confirms the existence of this licensing regime, making the plan highly plausible. Confidence is not absolute as the evidence lacks a direct, official press release from BOCHK itself.
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Summary

Bank of China Hong Kong’s shares rose 6.7% to HKD 37.58 after reports indicated it is preparing to apply for a stablecoin issuer license under Hong Kong’s new regulatory regime. The Hong Kong Monetary Authority began accepting applications on August 1, with more than 40 companies expressing interest, including Standard Chartered, JD.com, Ant Group, and Circle. Animoca Brands also announced a joint venture with Standard Chartered Hong Kong and HKT to pursue licensing. Hong Kong’s Stablecoin Bill mandates strict compliance measures such as reserve asset management, anti-money laundering controls, and fit-and-proper checks. Regulators cautioned that expressions of interest do not guarantee approval, as only a limited number of licenses will be issued. The stablecoin ordinance positions Hong Kong as a potential hub amid a $261 billion global stablecoin market. Meanwhile, Hong Kong raised $1.5 billion in July for stablecoin-related ventures, and the Securities and Futures Commission tightened crypto custody rules following $3 billion in global hacks. Analysts note the framework could encourage HKD and CNY stablecoin adoption, challenging USD dominance in Asian settlements.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a fiat currency, commodity, or other reserve asset.
  • Issuer License: A regulatory approval required for entities wishing to issue stablecoins under Hong Kong’s new framework.
  • CBDC (Central Bank Digital Currency): A digital form of a country’s sovereign currency issued and regulated by the central bank, such as China’s digital yuan.