Bank of China (Hong Kong) has reportedly expressed its intention to apply for the issuance of a stablecoin, officially entering the stablecoin market. The Hong Kong Monetary Authority (HKMA) had previously called for interested institutions to express their intentions by the end of August and advised well-prepared organizations to submit their applications as soon as possible, no later than the end of September. Following the announcement by the joint venture Anchorpoint, led by Standard Chartered Hong Kong (which holds a 50.5% stake), to apply, Bank of China (Hong Kong) (2388) has also joined the fray, actively preparing to apply for a stablecoin issuance license.
Today, Bank of China (Hong Kong) opened at HKD 36.8, rising by 4.49%.
Renminbi Internationalization as a Key Consideration
The issuance license for stablecoins in Hong Kong has not yet been granted but has already attracted significant market attention. Although Bank of China (Hong Kong) was not among the three institutions selected by the HKMA for the initial stablecoin sandbox, it has established a dedicated team to actively study related matters. Analysts point out that stablecoins play a crucial role in the macro layout of digital currencies and are likely to be linked to offshore renminbi in the future, further promoting the internationalization of the renminbi. Bank of China (Hong Kong) clearly values the development of stablecoins and is actively seeking to participate.
A spokesperson from Bank of China (Hong Kong) did not comment on the market rumors. At a recent earnings announcement, the bank stated that it is actively researching the application scenarios and risk management mechanisms for digital assets and digital currencies, and supports the development of Hong Kong's fintech and digital asset markets. An HKMA spokesperson mentioned that some institutions have expressed intentions to apply for stablecoin licenses, but did not disclose specific names.
Other Institutions Applying for Stablecoin Licenses
In July last year, the HKMA announced three institutions participating in the stablecoin sandbox: Anchorpoint, formed by Standard Chartered Hong Kong in collaboration with the AIA Group and Hong Kong Telecommunications (6823), Jingdong Coin Chain Technology (Hong Kong), and Round Coin Innovation Technology (a subsidiary of Round Coin Technology, founded by former HKMA president Norman Chan). As of now, Jingdong and Round Coin Technology have not responded regarding their intentions to apply.
Ant Group previously stated that it would apply as soon as the Stablecoin Ordinance comes into effect, but it has not responded on whether it has expressed its intention to the HKMA.
Standard Chartered Leads, but Regulatory Requirements May Affect Planning
Market analysis suggests that among the institutions that have expressed interest in applying, Standard Chartered's joint venture Anchorpoint currently leads in terms of technical readiness and cross-border market coverage. However, the HKMA's licensing requirements, particularly the identity verification regulations for each stablecoin holder, may impact the original application scenario planning and cost budgets for some applicants.
It is worth noting that eight years ago, the HKMA promoted the development of fintech in Hong Kong, and both Bank of China (Hong Kong) and Standard Chartered Hong Kong led consortiums that became among the first operators to receive virtual banking licenses in 2019.
HKMA Vice President Eddie Yue has previously stated that to ensure stable development, only a few stablecoin licenses will be issued in the first phase, with issuance expected early next year. Initial business profitability remains highly uncertain.
