Bank of China Shares Surge 6.7% on Stablecoin License Buzz

Bank of China’s Hong Kong-listed shares jumped 6.7% on Monday to close at HKD 37.580, after local reports suggested the lender’s city unit is preparing to apply for a stablecoin issuer license. The move comes just weeks after Hong Kong rolled out one of the world’s first dedicated licensing frameworks for fiat-referenced stablecoins on August 1.

The development has fueled speculation that one of China’s largest state-owned banks could launch its stablecoin, potentially creating a commercial rival to Beijing’s centrally controlled digital yuan.

Bank of China Moves Toward Stablecoin Application

According to the Hong Kong Economic Journal, the Bank of China (Hong Kong) has set up a dedicated task force to explore stablecoin issuance and prepare application materials. The bank did not respond to requests for comment, but recently told investors it is researching digital asset applications and related risk management.

Market analysts say Bank of China would be among the most significant applicants, given the scale of its operations and the government’s parallel rollout of the digital yuan. Some observers believe a licensed Bank of China token could provide a regulated, internationally accessible counterpart to the central bank’s CBDC.

BOC Hong Kong stock performance YTD / Source: Google Finance

This news pushed BOC Hong Kong shares up 6.7% to close at HKD 37.580. The stock has risen 50.62% year-to-date, underscoring a strong upward trend in investor confidence. The stock’s historic high remains HKD 40.850, recorded in April 2018, leaving just HKD 3 until a new peak.

Hong Kong’s New Stablecoin Framework and Global Expansion

Hong Kong’s new ordinance requires any entity issuing stablecoins in the city—or those linked to the Hong Kong dollar abroad—to obtain approval from the Hong Kong Monetary Authority (HKMA). Licensed issuers must follow strict reserve management rules, segregate client funds, guarantee redemption at par, and comply with disclosure, audit, and anti-money laundering requirements.