In a landmark decision, 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 move marks the first batch of approvals under the Stablecoins Ordinance, which was implemented in August 2025. According to HKMA Chief Executive Eddie Yue, the issuers are expected to launch their businesses in accordance with their plans while effectively managing risks. The HKMA hopes that the promotion of regulated stablecoins will address existing pain points in financial and economic activities, creating value for both individuals and businesses and supporting the healthy development of digital assets in Hong Kong.
The decision to prioritize the city's note-issuing banks, such as HSBC and Standard Chartered, appears to be a deliberate move. These banks have a long history of issuing currency, dating back to 1846 when private banks began issuing notes backed by silver deposits.
Today, they deposit U.S. dollars with the government's Exchange Fund and receive Certificates of Indebtedness in return, which are used to print banknotes. Yue has drawn parallels between the historical banknotes and stablecoins, describing them as a form of 'private money' that can serve as a medium of exchange.
The licenses come with a strict identity regime, requiring licensed stablecoins to only be transferred to wallets whose owners have undergone identity verification. This framework is one of the strictest in the world, with the travel rule applying to transfers above HK$8,000.
In practice, this means that HKD stablecoins will likely 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. Instead, stablecoins have become a major focus, with Standard Chartered CEO Bill Winters suggesting that they could 'lay the foundation for a new era of digital trade settlement.' The market's response to this development remains to be seen, as stablecoins are a $310 billion asset class dominated by USD-denominated tokens.
Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement, but it is uncertain whether a non-dollar stablecoin can build the necessary network effects to compete.