In a groundbreaking move, Hong Kong has awarded its inaugural stablecoin licenses to two prominent financial institutions: HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and inclusive of Animoca Brands. This development was announced on Friday and signifies the first batch of approvals under the Stablecoins Ordinance, which came into effect in August 2025.
According to HKMA Chief Executive Eddie Yue, the newly licensed issuers are expected to initiate operations in accordance with their plans, balancing growth opportunities with prudent risk management. The introduction of regulated stablecoins is anticipated to address existing challenges in financial and economic activities, generate value for both individuals and businesses, and contribute to the healthy development of digital assets in Hong Kong. Following a thorough assessment of 36 applications, the HKMA has prioritized risk management, reserve quality, and anti-money-laundering controls in its evaluation process.
Notably, the decision to license note-issuing banks first appears to be a deliberate strategy, given the historical significance of these institutions in Hong Kong's financial system. The licensed stablecoins will be subject to one of the world's most stringent Know-Your-Customer (KYC) frameworks, requiring identity verification for wallet owners and imposing transfer restrictions above a certain threshold. This approach is expected to differentiate HKD stablecoins from other freely transferable tokens. Furthermore, the bank-led stablecoin model underscores the HKMA's decision to deprioritize its central bank digital currency for retail use, instead focusing on the potential of stablecoins in facilitating cross-border commerce and trade settlement.
As the market navigates this new development, it remains to be seen whether regulated, bank-issued HKD stablecoins can carve out a significant role in regional trade settlement and compete with existing USD-denominated stablecoins.