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Bank of China Stock Surges 6.7% on Shock Stablecoin Issuer License News — Is a Digital Yuan Rival Coming?

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Shares of Bank of China Hong Kong unit jumped 6.7% on Monday, closing at HKD 37.58, after native reviews revealed the state-owned lender is getting ready to use for a stablecoin issuer license underneath Hong Kong’s new regulatory framework.

The information has fueled hypothesis that one of China’s largest banks may quickly challenge a state-backed stablecoin, doubtlessly positioning itself as a rival to the digital yuan.

According to the Hong Kong Economic Journal, Bank of China (Hong Kong) has already shaped a devoted activity drive to check stablecoin issuance. Market sources say the financial institution is actively getting ready supplies to turn out to be one of the primary license candidates, following the Hong Kong Monetary Authority’s (HKMA) name for early submissions by the tip of August.

The growth comes simply weeks after Hong Kong’s Stablecoin Bill came into force on August 1, establishing one of the world’s first devoted licensing regimes for fiat-referenced stablecoins.

Under the brand new ordinance, any entity issuing fiat-pegged stablecoins in Hong Kong, or overseas if linked to the Hong Kong greenback, should acquire authorization from the HKMA.

Licensed issuers are required to keep up strict reserve asset administration, segregate shopper funds, and assure redemption at par worth.

The legislation additionally mandates anti-money laundering compliance, danger administration protocols, disclosures, audits, and fit-and-proper checks for administration groups.

The HKMA started accepting expressions of curiosity on August 1 and has set September 30 because the deadline for formal functions. Officials confirmed they have already received inquiries from more than 40 companies, even earlier than the August 1 regulation took impact.

Major companies, together with JD.com, Ant Group, Standard Chartered, and Circle, publicly said utility intentions, whereas legislation companies report managing consultations for added candidates finalizing supplies.

On August 8, Animoca Brands announced a joint venture with Standard Chartered Hong Kong and HKT to use for the town’s first stablecoin license.

Hong Kong Positions as Regulated Stablecoin Hub Amid $261B Market Growth

The rising competitors has drawn heavy investor curiosity. Hong Kong regulators have cautioned in opposition to market volatility, noting that bulletins about licensing intentions have already triggered sharp inventory actions.

On August 14, the HKMA and Securities and Futures Commission (SFC) issued a joint statement warning that expressions of curiosity don’t assure approval. They harassed that licenses will solely be granted to candidates that meet the framework’s high thresholds.

HKMA chief govt Eddie Yue stated solely a small quantity of licenses will likely be issued initially, underscoring the strict standards. SFC CEO Julia Leung additionally warned buyers in opposition to chasing short-term worth strikes, noting that deceptive claims on social media had already influenced sentiment.

The ordinance’s rollout marks Hong Kong’s bid to place itself as a regulated hub for stablecoins at a time when world market capitalization in the sector has surged to a record $261 billion, after 22 consecutive months of growth.

Regulators hope that tighter guidelines will cut back systemic dangers whereas attracting main monetary establishments. Analysts say the framework may encourage non-USD stablecoin alternate options in Asia, doubtlessly difficult the greenback’s dominance in regional settlements.

Bank of China’s curiosity is particularly important given Beijing’s ongoing rollout of the digital yuan, its central financial institution digital forex (CBDC). While the digital yuan stays underneath the direct management of the People’s Bank of China, a licensed Bank of China stablecoin may present a business, internationally accessible counterpart inside a regulated framework.

Some observers consider such a growth may assist China take a look at the cross-border utility of a digital asset backed by state establishments.

The HKMA has stated it’ll proceed consultations on technical necessities and danger controls, and current issuers are anticipated to transition into compliance over the approaching months.

For now, the Authority has not granted any licenses, and buyers are urged to confirm any issuer’s credentials via official channels.

With Hong Kong pushing forward, the stablecoin licensing race is intensifying throughout Asia.

Hong Kong Raises $1.5B in July as Stablecoin Ventures Attract Investor Capital

Hong Kong’s push into stablecoins is unfolding in opposition to a broader backdrop of regulatory tightening and investor enthusiasm throughout Asia.

The SFC, on August 15, unveiled new custody standards for virtual asset trading platforms, responding to a wave of world hacks that drained greater than $3 billion from exchanges within the first half of 2025.

The round units minimal necessities for pockets infrastructure, transaction verification, and entry controls as half of the regulator’s “ASPIRe” roadmap for digital asset safety.

The urgency of the measures was underscored by a fresh breach at Turkish exchange BtcTurk on August 14, when attackers stole $48 million throughout seven blockchains in underneath 4 seconds, far quicker than most change alert programs.

Despite safety considerations, capital continues to pour into Hong Kong’s fast-evolving crypto sector. Publicly listed companies raised more than $1.5 billion in July to fund ventures tied to stablecoins, blockchain, and fee networks, based on change filings.

OSL alone secured $300 million in a fast-tracked share placement, with backing from sovereign wealth and hedge funds.

Notably, a devoted index of stablecoin-related shares has surged 65% this 12 months, far outpacing the Hang Seng.

The regulatory push is unfolding in opposition to a regional backdrop of fast developments. Japan is preparing to approve its first yen-pegged stablecoin this autumn, whereas China is weighing the launch of yuan-backed tokens to increase the forex’s world footprint.

With Goldman Sachs forecasting trillions in new flows into stablecoins, the sector’s transformation is barely accelerating, and Hong Kong is positioning itself on the heart.

The submit Bank of China Stock Surges 6.7% on Shock Stablecoin Issuer License News — Is a Digital Yuan Rival Coming? appeared first on Cryptonews.

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