The Hong Kong Monetary Authority has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, marking a significant milestone in the territory's fintech landscape. These approvals, which came into effect in August 2025, represent the first batch of licenses granted under the Stablecoins Ordinance.
According to HKMA Chief Executive Eddie Yue, the authority looks forward to the licensed issuers launching their business operations, exploring growth opportunities while effectively managing risks. The regulator hopes that the promotion of regulated stablecoins will address existing pain points in financial and economic activities, create value for individuals and businesses, and support the healthy development of digital assets in Hong Kong. Out of 36 applications, the HKMA has chosen to license the city's note-issuing banks first, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes. The decision to prioritize these banks appears to be deliberate, given their historical role in the Hong Kong financial system.
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 framework applies to transfers above HK$8,000 (~$1,000) and may lead to the development of on-chain compliance checks and white-listed wallets for HKD stablecoins. The bank-led stablecoin model 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 key focus area, with Standard Chartered CEO Bill Winters highlighting their potential to lay the foundation for a new era of digital trade settlement. However, it remains to be seen whether the market will adopt these regulated, bank-issued HKD stablecoins, given the dominance of USD-denominated tokens in the global stablecoin market.