In a groundbreaking move, 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. This development follows the introduction of the Stablecoins Ordinance in August 2025. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the regulatory body is looking forward to the licensed issuers commencing operations in line with their plans, while effectively managing associated risks.
Yue expressed hopes that the promotion of regulated stablecoins will 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 HKMA evaluated 36 applications before granting the initial licenses, 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.
These banks have a long history of issuing currency in Hong Kong, dating back to 1846 when private banks began issuing notes backed by silver deposits. Today, these banks deposit U.S. dollars with the government's Exchange Fund and receive Certificates of Indebtedness in return, which they use to print banknotes.
In a blog post, Yue drew parallels between the historical issuance of private money by commercial banks and the current function of stablecoins as blockchain-based equivalents, offering a stable value that can serve as a medium of exchange. The licenses are subject to one of the world's strictest Know Your Customer (KYC) frameworks for digital money, requiring licensed stablecoins to only be transferred to wallets whose owners have undergone identity verification.
Moreover, the travel rule applies to transfers exceeding HK$8,000 (~$1,000). This means that HKD stablecoins will likely incorporate compliance checks into their smart contracts, restricting transfers to wallets listed on an on-chain white list. This approach makes them structurally different from freely transferable tokens like USDT or USDC.
The bank-led stablecoin model also reflects the HKMA's decision to deprioritize its central bank digital currency (CBDC) for retail use, following an 11-group pilot program that found a weak retail case. Instead, stablecoins have become a key focus area, with Standard Chartered CEO Bill Winters suggesting that Hong Kong's push into stablecoins and tokenized deposits could lay the foundation for a new era of digital trade settlement. The market's response remains to be seen, given that stablecoins are a roughly $310 billion asset class dominated by USD-denominated tokens. Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, but it remains uncertain whether a non-dollar stablecoin can build the necessary network effects to compete.