In a landmark 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, 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. According to HKMA chief executive Eddie Yue, 'We anticipate the issuers will launch their businesses as planned, exploring growth opportunities while effectively managing risks.' The HKMA assessed 36 applications, with Financial Secretary Paul Chan indicating in his February budget address that only a limited number would be approved, prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to license note-issuing banks first appears to be deliberate, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes.
The licensed stablecoins will operate under one of the world's strictest Know Your Customer (KYC) frameworks for digital money, with transfers restricted to wallets whose owners have been identity-verified. This approach reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, instead focusing on the bank-led stablecoin model. The introduction of regulated, bank-issued HKD stablecoins is expected to play a role in regional trade settlement, but it remains to be seen whether a non-dollar stablecoin can build the necessary network effects to compete.