In a landmark move, Hong Kong has granted licenses to two major banking institutions, HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, to issue stablecoins. This development follows the implementation of the Stablecoins Ordinance in August 2025 and marks the first set of approvals by the Hong Kong Monetary Authority (HKMA), the territory's central bank.

According to HKMA Chief Executive Eddie Yue, the regulatory body looks forward to the licensed issuers commencing operations in line with their plans, exploring growth opportunities while ensuring proper risk management. The hope is that these regulated stablecoins will address existing pain points in financial and economic activities, create value for both individuals and businesses, and support the healthy development of digital assets in Hong Kong. The licensing process involved the assessment of 36 applications, with the regulator 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, reflecting the historical role these banks have played in issuing Hong Kong dollar banknotes. The licensed stablecoins will operate under one of the world's strictest Know Your Customer (KYC) frameworks, with transfers limited to wallets whose owners have undergone identity verification. Furthermore, the travel rule will apply to transactions exceeding HK$8,000. This approach differs significantly from the more open transfer policies of other stablecoins like USDT or USDC.

The focus on stablecoins also indicates a shift in priorities for the HKMA, which has deprioritized the development of a central bank digital currency (CBDC) for retail use following an 11-group pilot program. The introduction of these regulated stablecoins is seen as a potential foundation for a new era of digital trade settlement, particularly in cross-border commerce.

However, the success of these non-dollar stablecoins in competing in a market dominated by USD-denominated tokens remains to be seen.