In a significant development, Hong Kong has awarded its inaugural stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, marking the first approvals under the Stablecoins Ordinance that came into effect in August 2025. According to Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), the regulator anticipates that these issuers will initiate their operations as planned, exploring growth opportunities while effectively managing associated risks.
Yue expressed hope that the promotion of regulated stablecoins would address existing pain points in financial and economic activities, generating value for both individuals and businesses and supporting the healthy development of digital assets in Hong Kong. Following the assessment of 36 applications, the HKMA has taken a cautious approach, prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to initially license note-issuing banks, such as HSBC and Standard Chartered, appears to be a deliberate move, given their historical role in printing Hong Kong dollar banknotes. The newly licensed stablecoins will be subject to one of the world's strictest Know Your Customer (KYC) frameworks for digital money, requiring identity verification for wallet owners and imposing transfer restrictions.
This development also reflects the HKMA's decision to deprioritize its central bank digital currency (CBDC) for retail use, instead focusing on the bank-led stablecoin model. The success of these regulated, bank-issued HKD stablecoins in carving out a role in regional trade settlement remains to be seen, particularly in a market dominated by USD-denominated tokens.