With the official implementation of the Hong Kong "stablecoin regulations" on August 1, 2025, an intense competition surrounding the "stablecoin issuer license" has begun in the Asian financial hub. The Hong Kong Monetary Authority (HKMA) confirmed that as of the expression of interest deadline on August 31, it has received up to 77 applications, marking the beginning of a modern-day "gold rush."
In this highly anticipated competition, the most eye-catching news is that Bank of China (Hong Kong) Limited (BoC Hong Kong) is also actively preparing to apply, aiming for one of the first licenses to be issued. As soon as this news broke, it immediately sparked a strong reaction in the capital markets, indicating that this battle for licenses is not only related to commercial interests but may also profoundly impact the regional financial landscape.
77 "pursuers"
The Hong Kong Monetary Authority revealed that the sources of these 77 letters of intent are extremely diverse, forming a multifaceted "pursuer alliance." Applicants include not only traditional banking giants and large payment processors but also asset management companies, securities firms, technology giants, e-commerce platforms, and vibrant Web3 startups. This wide-ranging cross-sector participation highlights the high recognition from all sectors of Hong Kong's status as a global digital asset center, as well as the immense confidence in the future applications of stablecoins.
Despite the Monetary Authority's silence on the specific list of applicants and its emphasis that expressing intent does not equate to guaranteed approval, several heavyweight contenders' names have already emerged in the market. In addition to Standard Chartered Bank Hong Kong, which has already tested through the "regulatory sandbox," JD Coinchain Technology, and Yuan Coin Technology founded by former Monetary Authority chief Chan Tak-lam, tech giants like Ant Group have also publicly expressed their intention to apply. There are even reports indicating that state-owned enterprises in the energy sector are researching the feasibility of using stablecoins for cross-border settlements, demonstrating that the application potential of stablecoins has far exceeded the native crypto domain, extending into international trade and other aspects of the real economy.
Among the numerous applicants, the rumors surrounding Bank of China Hong Kong are undoubtedly a "heavy bomb" thrown into the market. It is reported that Bank of China Hong Kong, one of the three note-issuing banks in Hong Kong, not only intends to apply for a license but has also established a dedicated working group for this purpose, actively advancing the relevant process in an effort to become one of the first licensed institutions.
This rumor quickly ignited enthusiasm in the capital market. On September 1, the stock price of Bank of China Hong Kong (2388.HK) soared more than 7% during intraday trading, reaching a historical high of 38.2 HKD, and although the closing increase narrowed, it still stood at 6.7%, closing at 37.58 HKD. The strong performance of the stock price intuitively reflects investors' great imagination about the possibilities if Bank of China Hong Kong can successfully issue stablecoin.
Regarding market rumors, Bank of China (Hong Kong) has maintained the cautious stance typical of traditional financial institutions, stating that it would not comment. However, at last week's earnings conference, the bank's management revealed that they are actively researching the potential application scenarios and risk control mechanisms of digital assets and digital currencies, and support the development of Hong Kong's fintech and digital asset market. This statement has been interpreted by the outside world as an indirect confirmation of its layout in the digital finance field.
offshore renminbi stablecoin
Market analysis generally believes that if Bank of China Hong Kong successfully obtains a license, its significance will far exceed the commercial level. The key point of interest is that this move may directly relate to the development of "stablecoins linked to offshore RMB." As the world's largest offshore RMB center, the issuance of regulated RMB stablecoins by an institution like Bank of China Hong Kong, which has a solid background, could become an important step in promoting the internationalization of the RMB.
This stablecoin can provide an efficient, low-cost, and strictly regulated value circulation tool in Hong Kong for global trade and financial markets, serving as a beneficial complement to existing payment systems like SWIFT. Dr. Mak Chui Choi, Associate Professor of Accounting, Economics and Finance at Hong Kong Baptist University, analyzed that stablecoins can lower transaction costs and enhance payment efficiency, presenting banks with opportunities to expand new businesses and strengthen competitiveness.
At the same time, this is also seen as complementary to the domestic digital renminbi (e-CNY) system. The digital renminbi mainly focuses on domestic retail payment scenarios, while an internationally recognized offshore renminbi stablecoin issued in Hong Kong can better serve international trade, cross-border payments, and the global financial market. Together, they contribute to the globalization process of the renminbi at different levels.
In the face of unprecedented enthusiasm in the market, Hong Kong regulators have shown a high degree of prudence and calm. The Deputy Chief Executive of the Monetary Authority, Chen Wei-min, has clearly stated that due to the enormous and complex workload of the review process, which involves strict due diligence, it is expected that the first batch of licenses will be issued in a few months at the earliest. Furthermore, to ensure a stable start for the market, only a few licenses will be issued in the first phase.
Hong Kong's Stablecoin Ordinance is considered one of the strictest regulatory frameworks in the world. It imposes very high requirements on applying institutions, including:
Capital requirement: The minimum paid-up capital must reach 25 million HKD. Reserve management: 100% reserve asset support must be maintained, and the reserve assets must be high-quality, highly liquid assets, strictly isolated from the issuer's own assets. Redemption guarantee: Users must be ensured to redeem the stablecoin at face value within one business day. Local operations: An entity office must be established in Hong Kong, and a resident management team must be in place. Compliance system: A comprehensive anti-money laundering (AML) and counter-terrorism financing (CFT) mechanism must be established.
In addition, regarding the recent market fluctuations caused by rumors of licensing, the Monetary Authority and the Hong Kong Securities and Futures Commission (SFC) jointly issued a warning in mid-August, reminding investors to be cautious of market speculation related to the application plans and emphasizing that these preliminary plans carry significant uncertainty.
The new wave of digital finance in Asia
The recent opening of stablecoin licenses in Hong Kong coincides with the time when various Asian countries are actively laying out their digital currency strategies. Japan plans to approve its first yen stablecoin later this year, while South Korean financial authorities are also actively researching plans for a won stablecoin. Against this backdrop, Hong Kong is striving to consolidate its leading position as a digital financial hub in the region and even globally, thanks to its clear and strict regulatory framework and open stance.
The efficiency improvements and cost reductions brought by blockchain technology are the core attractions of stablecoins, especially in emerging markets, where stablecoins can also provide users with tools to hedge against local currency fluctuations. Therefore, with the clarification of regulations, the stablecoin market is expected to experience exponential growth in the next 2 to 5 years.
In summary, the fierce competition among 77 institutions, particularly the potential entry of Bank of China Hong Kong, has injected unprecedented vitality and imagination into Hong Kong's stablecoin market. However, the regulatory cautious attitude and strict entry thresholds also ensure that this financial innovation will proceed on a solid and secure foundation. Ultimately, those who can secure the first batch of precious "tickets to entry" will not only reshape Hong Kong's fintech landscape but also set a new benchmark for the compliant development of global digital assets.
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77 companies compete for Hong Kong stablecoin licenses! Is one of China's six major banks officially entering the market?
With the official implementation of the Hong Kong "stablecoin regulations" on August 1, 2025, an intense competition surrounding the "stablecoin issuer license" has begun in the Asian financial hub. The Hong Kong Monetary Authority (HKMA) confirmed that as of the expression of interest deadline on August 31, it has received up to 77 applications, marking the beginning of a modern-day "gold rush."
In this highly anticipated competition, the most eye-catching news is that Bank of China (Hong Kong) Limited (BoC Hong Kong) is also actively preparing to apply, aiming for one of the first licenses to be issued. As soon as this news broke, it immediately sparked a strong reaction in the capital markets, indicating that this battle for licenses is not only related to commercial interests but may also profoundly impact the regional financial landscape.
77 "pursuers"
The Hong Kong Monetary Authority revealed that the sources of these 77 letters of intent are extremely diverse, forming a multifaceted "pursuer alliance." Applicants include not only traditional banking giants and large payment processors but also asset management companies, securities firms, technology giants, e-commerce platforms, and vibrant Web3 startups. This wide-ranging cross-sector participation highlights the high recognition from all sectors of Hong Kong's status as a global digital asset center, as well as the immense confidence in the future applications of stablecoins.
Despite the Monetary Authority's silence on the specific list of applicants and its emphasis that expressing intent does not equate to guaranteed approval, several heavyweight contenders' names have already emerged in the market. In addition to Standard Chartered Bank Hong Kong, which has already tested through the "regulatory sandbox," JD Coinchain Technology, and Yuan Coin Technology founded by former Monetary Authority chief Chan Tak-lam, tech giants like Ant Group have also publicly expressed their intention to apply. There are even reports indicating that state-owned enterprises in the energy sector are researching the feasibility of using stablecoins for cross-border settlements, demonstrating that the application potential of stablecoins has far exceeded the native crypto domain, extending into international trade and other aspects of the real economy.
Among the numerous applicants, the rumors surrounding Bank of China Hong Kong are undoubtedly a "heavy bomb" thrown into the market. It is reported that Bank of China Hong Kong, one of the three note-issuing banks in Hong Kong, not only intends to apply for a license but has also established a dedicated working group for this purpose, actively advancing the relevant process in an effort to become one of the first licensed institutions.
This rumor quickly ignited enthusiasm in the capital market. On September 1, the stock price of Bank of China Hong Kong (2388.HK) soared more than 7% during intraday trading, reaching a historical high of 38.2 HKD, and although the closing increase narrowed, it still stood at 6.7%, closing at 37.58 HKD. The strong performance of the stock price intuitively reflects investors' great imagination about the possibilities if Bank of China Hong Kong can successfully issue stablecoin.
Regarding market rumors, Bank of China (Hong Kong) has maintained the cautious stance typical of traditional financial institutions, stating that it would not comment. However, at last week's earnings conference, the bank's management revealed that they are actively researching the potential application scenarios and risk control mechanisms of digital assets and digital currencies, and support the development of Hong Kong's fintech and digital asset market. This statement has been interpreted by the outside world as an indirect confirmation of its layout in the digital finance field.
offshore renminbi stablecoin
Market analysis generally believes that if Bank of China Hong Kong successfully obtains a license, its significance will far exceed the commercial level. The key point of interest is that this move may directly relate to the development of "stablecoins linked to offshore RMB." As the world's largest offshore RMB center, the issuance of regulated RMB stablecoins by an institution like Bank of China Hong Kong, which has a solid background, could become an important step in promoting the internationalization of the RMB.
This stablecoin can provide an efficient, low-cost, and strictly regulated value circulation tool in Hong Kong for global trade and financial markets, serving as a beneficial complement to existing payment systems like SWIFT. Dr. Mak Chui Choi, Associate Professor of Accounting, Economics and Finance at Hong Kong Baptist University, analyzed that stablecoins can lower transaction costs and enhance payment efficiency, presenting banks with opportunities to expand new businesses and strengthen competitiveness.
At the same time, this is also seen as complementary to the domestic digital renminbi (e-CNY) system. The digital renminbi mainly focuses on domestic retail payment scenarios, while an internationally recognized offshore renminbi stablecoin issued in Hong Kong can better serve international trade, cross-border payments, and the global financial market. Together, they contribute to the globalization process of the renminbi at different levels.
In the face of unprecedented enthusiasm in the market, Hong Kong regulators have shown a high degree of prudence and calm. The Deputy Chief Executive of the Monetary Authority, Chen Wei-min, has clearly stated that due to the enormous and complex workload of the review process, which involves strict due diligence, it is expected that the first batch of licenses will be issued in a few months at the earliest. Furthermore, to ensure a stable start for the market, only a few licenses will be issued in the first phase.
Hong Kong's Stablecoin Ordinance is considered one of the strictest regulatory frameworks in the world. It imposes very high requirements on applying institutions, including: Capital requirement: The minimum paid-up capital must reach 25 million HKD. Reserve management: 100% reserve asset support must be maintained, and the reserve assets must be high-quality, highly liquid assets, strictly isolated from the issuer's own assets. Redemption guarantee: Users must be ensured to redeem the stablecoin at face value within one business day. Local operations: An entity office must be established in Hong Kong, and a resident management team must be in place. Compliance system: A comprehensive anti-money laundering (AML) and counter-terrorism financing (CFT) mechanism must be established.
In addition, regarding the recent market fluctuations caused by rumors of licensing, the Monetary Authority and the Hong Kong Securities and Futures Commission (SFC) jointly issued a warning in mid-August, reminding investors to be cautious of market speculation related to the application plans and emphasizing that these preliminary plans carry significant uncertainty.
The new wave of digital finance in Asia
The recent opening of stablecoin licenses in Hong Kong coincides with the time when various Asian countries are actively laying out their digital currency strategies. Japan plans to approve its first yen stablecoin later this year, while South Korean financial authorities are also actively researching plans for a won stablecoin. Against this backdrop, Hong Kong is striving to consolidate its leading position as a digital financial hub in the region and even globally, thanks to its clear and strict regulatory framework and open stance.
The efficiency improvements and cost reductions brought by blockchain technology are the core attractions of stablecoins, especially in emerging markets, where stablecoins can also provide users with tools to hedge against local currency fluctuations. Therefore, with the clarification of regulations, the stablecoin market is expected to experience exponential growth in the next 2 to 5 years.
In summary, the fierce competition among 77 institutions, particularly the potential entry of Bank of China Hong Kong, has injected unprecedented vitality and imagination into Hong Kong's stablecoin market. However, the regulatory cautious attitude and strict entry thresholds also ensure that this financial innovation will proceed on a solid and secure foundation. Ultimately, those who can secure the first batch of precious "tickets to entry" will not only reshape Hong Kong's fintech landscape but also set a new benchmark for the compliant development of global digital assets.