Bank of China’s Hong Kong Unit Explores Stablecoin Issuance Amid Market Speculation

Shares of Bank of China's Hong Kong branch surged 6.7% to HKD$37.58 following reports of its planned application for a stablecoin issuer license. The MOVE aligns with Hong Kong's newly implemented regulatory framework for stablecoins, which mandates strict reserve management and anti-money laundering protocols.

Local media indicates the bank has assembled a dedicated task force to study digital asset applications, though officials declined to comment. The development comes as Hong Kong positions itself as a hub for regulated cryptocurrency innovation, attracting interest from major financial institutions like Standard Chartered.

Market observers note the rally reflects growing institutional interest in blockchain-based financial instruments, despite regulatory warnings about speculation-driven volatility. The GENIUS Act's recent passage in the U.S. has further intensified global competition for stablecoin market dominance.