BOCHK plans to apply for stablecoin issuer license

BOCHK plans to apply for stablecoin issuer license

PetroChina, a leading state-owned enterprise in China, has initiated a feasibility study to explore the use of stablecoins for cross-border payments and settlements. This move aligns with Hong Kong's new stablecoin regulations, which came into effect on August 1, 2025. The study aims to modernize PetroChina's global trade systems and reduce transaction costs, positioning the company at the forefront of digital financial innovation.

Hong Kong's Stablecoin Ordinance, approved by the Legislative Council, requires issuers to satisfy stringent requirements, including effective asset backing, good governance, and a robust capital base. The Hong Kong Monetary Authority (HKMA) has been entrusted with overseeing the licensing and supervision of stablecoin issuers under this framework. The new regulatory regime is expected to enhance the legitimacy of stablecoins within the financial system, fostering greater institutional and retail confidence [2].

PetroChina's decision to explore stablecoins signifies a significant shift for large state-owned companies in global trade. Stablecoins, which are digital representations of fiat currencies, can provide a more efficient and quicker settlement solution. The feasibility study, which is still in its early stages, demonstrates that traditional companies are beginning to explore digital finance. PetroChina is working on the role that stablecoins may play in large-scale, real-world trade deals, aiming to address the inefficiencies and high costs of traditional financial systems.

Meanwhile, BOCHK, a major financial institution, has announced plans to apply for a stablecoin issuer license. The application is in line with the new regulatory framework in Hong Kong, which is expected to begin in early 2026. BOCHK's move underscores the convergence between traditional finance and digital assets, as major financial institutions seek to leverage stablecoins for improved efficiency and cost savings.

The regulatory shift in Hong Kong is seen as a balanced approach to managing risks while promoting regulated participation in the stablecoin space. The new framework is expected to drive liquidity towards licensed platforms, potentially increasing the appeal of stablecoins post-compliance. The market will closely monitor how these regulations shape the digital asset ecosystem, as the interplay between regulatory oversight and innovation will be a key determinant of Hong Kong’s long-term success in the stablecoin space [3].

References:
[1] https://www.livebitcoinnews.com/petrochina-begins-study-on-stablecoin-use-for-cross-border-payments/
[2] https://www.ainvest.com/news/hong-kong-finalizes-stablecoin-licensing-framework-august-2025-2508/
[3] https://financefeeds.com/bitmart-pulls-hong-kong-license-application-as-crypto-exchanges-retreat/