In a landmark move, Hong Kong has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, as announced on Friday. The approvals, made by the Hong Kong Monetary Authority (HKMA), the territory's central bank, represent the first batch under the Stablecoins Ordinance that took effect in August 2025.
According to HKMA chief executive Eddie Yue, "We look forward to the issuers launching their businesses as planned, exploring growth opportunities while properly managing risks." Yue also expressed hope that the promotion of regulated stablecoins will address pain points in financial and economic activities, create value for individuals and businesses, and support the healthy development of digital assets in Hong Kong. The HKMA assessed 36 applications and had signaled that the initial round would be limited, with Financial Secretary Paul Chan stating in his February budget address that only a small number would be approved, prioritizing risk management, reserve quality, and anti-money-laundering controls.
The decision to license note-issuing banks first appears deliberate, given that HSBC and Standard Chartered are two of only three commercial banks authorized to print Hong Kong dollar banknotes. The licenses come with one of the world's strictest Know Your Customer (KYC) frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets whose owners have been identity-verified, with the travel rule applying to transfers above HK$8,000. This means that HKD stablecoins will likely embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list, making them structurally different from freely transferable tokens like USDT or USDC. The bank-led stablecoin model reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, following an 11-group pilot program that found the retail case was weak.
Instead, stablecoins have become a key focus, with Standard Chartered CEO Bill Winters stating that Hong Kong's push into stablecoins and tokenized deposits could lay the foundation for a new era of digital trade settlement, positioning them as a new medium for cross-border commerce.