The Bank of China's Hong Kong branch has officially applied for a stablecoin issuer license under Hong Kong's new regulatory framework that launched on August 1, 2025. This follows earlier reports that sent the bank's Hong Kong-listed shares surging 6.7% to HKD$37.58 amid speculation about its stablecoin plans.
The application positions Bank of China Hong Kong among the first major financial institutions seeking approval from the Hong Kong Monetary Authority (HKMA), joining other interested parties like Standard Chartered. Chinese tech giants JD.com and Ant Financial have also announced plans to seek licenses abroad for their international businesses, potentially including Hong Kong.
The regulatory regime imposes strict requirements on reserve management, redemption guarantees, client fund segregation, anti-money laundering measures, disclosure, and operator vetting. All issuers must secure HKMA approval and comply by August 2025. The bank's application does not specify which fiat currency the stablecoin would be pegged to, though HKD or USD are potential options.
Vincent Chok, CEO of Hong Kong-based First Digital, highlighted the appeal of stablecoins: "Blockchain technology reduces settlement times and bypasses the traditional intermediary fees of banks, especially pronounced in emerging markets where growing stablecoin adoption provides users a hedge against currency volatility." He projected exponential growth in the next 2-5 years as regulation provides clarity.
However, regulators have urged caution. The Securities and Futures Commission (SFC) and HKMA jointly warned investors that market movements tied to licensing rumors may be misleading, noting "significant uncertainties surrounding the outcomes of these preliminary plans or applications." The HKMA emphasized that no licenses have been issued yet and that holders of unlicensed stablecoins are at their own risk.