Due to rumors about stablecoin licensing, Bank of China Hong Kong's stock price soared by 6.7%.

Recently, the stock price of Bank of China (Hong Kong) has stirred waves in the Hong Kong market, soaring 6.7% in a single day, closing at HKD 37.580, marking a cumulative rise of 50.62% for the year. This surge is attributed to market rumors that the bank is actively preparing to apply for a stablecoin issuance license in Hong Kong. On August 1, Hong Kong officially launched a world-leading regulatory framework for fiat currency-backed stablecoins, attracting the attention of domestic and international giants including JD.com and Ant Group, and the stablecoin market craze is sweeping across Asia.

The stablecoin market is surging.

The global stablecoin market has exceeded $260 billion, with a particularly strong interest in non-US dollar stablecoins in the Asian region. Hong Kong, as an international financial center, has become the forefront of global stablecoin development due to its newly implemented strict licensing system. It is reported that Bank of China (Hong Kong) has formed a dedicated team to conduct in-depth research on stablecoin issuance schemes and is preparing relevant application materials. Although the bank has not publicly confirmed this, it has recently informed investors that it is exploring innovative applications in the digital asset field, attracting widespread market attention.

Analysts point out that if the Bank of China successfully obtains permission, the stablecoin it issues may become a strong supplement to the digital renminbi, providing compliant and efficient solutions for international financial transactions. This will not only strengthen the Bank of China's position in the global financial market but may also reshape the competitive landscape of the Asian stablecoin market.

Hong Kong's new regulatory rules lead the world

The Hong Kong Monetary Authority (HKMA) launched the stablecoin issuance license application on August 1, with a deadline of September 30. The new regulations require issuers to strictly manage reserve assets, segregate customer funds, ensure redemption at par value, and comply with anti-money laundering and transparency disclosure requirements. This framework has attracted over 40 companies, including Standard Chartered Bank, Circle, and Animoca Brands, expressing their intention. Among them, Animoca Brands has established a joint venture with Standard Chartered Hong Kong and Hong Kong Telecommunications to strive to be among the first approved enterprises.

At the same time, Chinese tech giants JD.com and Ant Group are also planning to expand their stablecoin business overseas. JD.com founder Liu Qiangdong stated that stablecoins will significantly reduce cross-border payment costs, and in the future, will expand from the enterprise side to the consumer market. Vincent Chok, CEO of First Digital in Hong Kong, pointed out that the efficient settlement capabilities of blockchain technology and its hedging against currency fluctuations make stablecoins especially attractive in emerging markets in Asia.

The Asian stablecoin craze and investment heat

The investment enthusiasm in Hong Kong's digital asset market continues to soar. In July, related enterprises raised approximately $1.5 billion through financing, among which the Hong Kong licensed platform OSL secured $300 million in investment, backed by sovereign wealth funds and hedge funds. The index tracking stablecoin-related stocks has risen over 60% this year, far exceeding the Hang Seng Index, indicating strong confidence from investors in this field.

However, the Hong Kong Securities and Futures Commission and the Monetary Authority also issued a warning in mid-August, reminding investors to beware of market fluctuations caused by licensing rumors, emphasizing that investment safety can only be ensured by verifying information through official channels.

The Rise of Asian Non-Dollar Stablecoins

Hong Kong's strict regulation not only promotes the development of the local market but may also accelerate the adoption of non-US dollar stablecoins in Asia. Japan plans to approve its first yen-pegged stablecoin within the year, while South Korea is also exploring won-backed stablecoin projects. In China, the market speculates that a renminbi-backed stablecoin may become a complement to the digital renminbi, aiding the diversification of regional trade and financial settlements.

Conclusion

With the implementation of the stablecoin regulatory framework in Hong Kong, the Asian digital asset market is ushering in new development opportunities. The stock price performance of Bank of China (Hong Kong) and its stablecoin layout plan reflect the market's great expectations for this emerging field. However, as the regulation remains unclear, investors should remain cautious and closely monitor official developments to seize the opportunities brought by this wave of digital financial trends.