In a landmark decision, the Hong Kong Monetary Authority has issued its first two stablecoin licenses 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 was enacted in August 2025. According to Eddie Yue, Chief Executive of the HKMA, the authority looks forward to the licensed issuers commencing operations in line with their plans, while effectively managing associated risks.
The HKMA hopes that the promotion of regulated stablecoins will address existing challenges in financial and economic activities, create value for individuals and businesses, and support the healthy development of digital assets in Hong Kong. The licensing process involved assessing 36 applications, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to license note-issuing banks first appears to be a deliberate move, as HSBC and Standard Chartered are two of the three commercial banks authorized to print Hong Kong dollar banknotes.
The licenses are subject to 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. This strict regime may lead to the development of stablecoins that embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list.
The bank-led stablecoin model also 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 to be weak. The market's response to these developments remains to be seen, as stablecoins are a roughly $310 billion asset class dominated by USD-denominated tokens.