Key Takeaways:
- Bank of China’s Hong Kong stock surged 6.7% on rumors it may apply for a stablecoin license.
- The bank has not confirmed the plan, but recently told investors it is exploring digital asset applications and risk controls.
- Other institutions, such as Standard Chartered, JD.com, and Ant Financial, are considering stablecoin licensing for cross-border payments.
Bank of China’s Hong Kong-listed stock surged by 6.7% to HKD $37.58 after rumors circulated that the state-owned bank is preparing to apply for a stablecoin license under Hong Kong’s new regulatory framework.
The Hong Kong Economic Journal reported that the Bank of China is actively preparing to apply for a license. The bank hopes to be among the first batch of issuers approved by the local monetary authority in Hong Kong.
The Bank of China has not publicly announced the plan, but executives told investors last week that they were looking into digital asset applications and risk controls.
Hong Kong had recently announced its stablecoin licensing framework on August 1st, 2025, requiring issuers to seek approval from the Hong Kong Monetary Authority (HKMA). Additionally, issuers also have to meet certain guidelines, such as reserve management, redemption guarantees, fund segregation, AML compliance, and operator verification.
The framework envisions the city as a possible worldwide hub for regulated stablecoins, echoing recent developments in the United States with the GENIUS Act.
This news comes as major financial institutions and Chinese tech companies are adopting a similar approach. Standard Chartered has expressed interest, and JD.com and Ant Financial are allegedly considering international licenses to enable cross-border payment firms. According to JD founder Richard Liu, stablecoins might reduce settlement costs for international transactions before extending to consumer use.
Market experts remarked that speculation contributed to investor euphoria. Regulators also cautioned of volatility in stock price movements due to rumors about digital assets.
