In a landmark decision, Hong Kong has issued its first two licenses for stablecoin issuers to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This move marks the first batch of approvals under the Stablecoins Ordinance, which came into effect in August 2025. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, the regulator is looking forward to the licensed issuers launching their businesses while effectively managing risks. The HKMA assessed 36 applications before making the decision, prioritizing risk management, reserve quality, and anti-money-laundering controls.
By licensing the city's note-issuing banks first, the regulator appears to be taking a deliberate approach. The licenses are subject to one of the world's strictest Know Your Customer (KYC) frameworks, requiring identity verification for wallet owners and restricting transfers above a certain threshold. This development reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, instead focusing on the bank-led stablecoin model.
The success of this model remains to be seen, as the market is dominated by USD-denominated tokens. However, Hong Kong is betting on regulated, bank-issued HKD stablecoins to play a role in regional trade settlement.