In a landmark decision, Hong Kong has issued its inaugural stablecoin licenses to two prominent financial institutions, HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and backed by Animoca Brands, as announced on Friday. This development marks the first batch of approvals under the Stablecoins Ordinance, which was enacted in August 2025. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the regulator is looking forward to the licensed issuers launching their operations in line with their plans, while effectively managing associated risks. The HKMA chief expressed hopes that the introduction of regulated stablecoins would address existing challenges in financial and economic activities, create value for both individuals and businesses, and support the healthy growth of digital assets in Hong Kong.
The licensing decision follows the assessment of 36 applications, with the regulator prioritizing a limited initial round based on stringent criteria, including risk management, reserve quality, and anti-money-laundering controls. Notably, the decision to license note-issuing banks first appears to be a deliberate move, given the historical context of Hong Kong's banking system.
The newly licensed stablecoins will be subject to one of the world's most rigorous Know-Your-Customer (KYC) frameworks for digital money, with strict identity verification requirements and transfer restrictions. This approach 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 introduction of regulated stablecoins in Hong Kong is expected to carve out a new role in regional trade settlement, leveraging the strengths of the city's financial institutions and regulatory framework.