Financial institution of China’s Hong Kong-listed shares jumped 6.7% on Monday to shut at HKD 37.580, after native stories prompt the lender’s metropolis unit is making ready to use for a stablecoin issuer license. The transfer comes simply weeks after Hong Kong rolled out one of many world’s first devoted licensing frameworks for fiat-referenced stablecoins on August 1.
The event has fueled hypothesis that one in every of China’s largest state-owned banks may launch its stablecoin, probably making a business rival to Beijing’s centrally managed digital yuan.
Financial institution of China Strikes Towards Stablecoin Utility
Based on the Hong Kong Financial Journal, the Financial institution of China (Hong Kong) has arrange a devoted job power to discover stablecoin issuance and put together utility supplies. The financial institution didn’t reply to requests for remark, however not too long ago instructed traders it’s researching digital asset purposes and associated danger administration.
Market analysts say Financial institution of China could be among the many most important candidates, given the dimensions of its operations and the federal government’s parallel rollout of the digital yuan. Some observers imagine a licensed Financial institution of China token may present a regulated, internationally accessible counterpart to the central financial institution’s CBDC.
BOC Hong Kong inventory efficiency YTD / Supply: Google Finance
Hong Kong’s New Stablecoin Framework and International Growth
Hong Kong’s new ordinance requires any entity issuing stablecoins within the metropolis—or these linked to the Hong Kong greenback overseas—to acquire approval from the Hong Kong Financial Authority (HKMA). Licensed issuers should comply with strict reserve administration guidelines, segregate consumer funds, assure redemption at par, and adjust to disclosure, audit, and anti-money laundering necessities.
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🇨🇳 Financial institution of China (Hong Kong) surged over 7% at present after asserting plans to use for a stablecoin issuer license.
POWER OF #RWA 🔥 pic.twitter.com/FSN4gNDegB
— Actual World Asset Watchlist (@RWAwatchlist_) September 1, 2025
The HKMA started accepting expressions of curiosity on August 1 and set September 30 as the appliance deadline. Officers mentioned greater than 40 firms, together with Customary Chartered, Circle, and Animoca Manufacturers, have already inquired. On August 8, Animoca confirmed a three way partnership with Customary Chartered Hong Kong and HKT to pursue the town’s first license.
Chinese language tech giants JD.com and Ant Group additionally introduced plans to hunt stablecoin licenses overseas. JD.com founder Richard Liu mentioned in June that the corporate goals to chop cross-border cost prices by means of stablecoins, beginning with business-to-business transfers earlier than increasing to customers. Vincent Chok, CEO of Hong Kong-based First Digital, highlighted effectivity as a driver.
“Blockchain technology reduces settlement times and bypasses the traditional intermediary fees of banks. The opportunity is especially pronounced in emerging markets where stablecoins hedge against currency volatility.” He added that regulation is accelerating adoption: “The current trajectory suggests exponential growth in the next two to five years.”
Stablecoin Rally Drives Investor Curiosity in Asia
Investor exercise in Hong Kong’s digital asset sector has surged alongside the brand new licensing regime. In July, listed firms raised about $1.5 billion for stablecoin and blockchain ventures. OSL—one of many metropolis’s largest licensed digital asset platforms—secured $300 million by means of a share placement supported by sovereign wealth and hedge funds.
A sector index monitoring stablecoin-related equities has gained greater than 60% this yr, far forward of the Hold Seng. Financial institution of China’s rally underscores sturdy urge for food however highlights the volatility regulators repeatedly warning in opposition to.
Nevertheless, in mid-August, Hong Kong’s SFC and HKMA warned that sharp market swings tied to licensing rumors might mislead traders, urging vigilance.
Analysts observe that Hong Kong’s strict regime may speed up the rise of non‑USD stablecoins in Asia, offering options to the greenback in regional commerce and settlement.
Japan is making ready to approve its first yen-pegged token later this yr, whereas China reportedly explores yuan-backed stablecoins to enhance the digital yuan. In South Korea, monetary authorities are additionally finding out won-backed stablecoin initiatives.
At this stage, the HKMA has not issued any licenses. Traders are urged to confirm issuer credentials by means of official channels, as regulators preserve that rumors alone is not going to translate into approvals.
