In a significant development, Hong Kong has awarded its first two stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands. This move marks the inaugural batch of approvals under the Stablecoins Ordinance, which became effective in August 2025. According to HKMA Chief Executive Eddie Yue, the authority looks forward to the licensed issuers commencing operations in line with their plans, while also ensuring proper risk management. 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 growth of digital assets in Hong Kong.
The HKMA evaluated 36 applications and initially indicated that only a limited number would be approved, with a focus on risk management, reserve quality, and anti-money-laundering controls. The decision to prioritize the city's note-issuing banks, including HSBC and Standard Chartered, appears to be deliberate, given their historical role in printing Hong Kong dollar banknotes. The licensed stablecoins will be 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 approach differs significantly from that of freely transferable tokens like USDT or USDC.
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. Standard Chartered CEO Bill Winters believes that Hong Kong's push into stablecoins and tokenized deposits could lay the foundation for a new era of digital trade settlement, positioning them as a medium for cross-border commerce. However, it remains to be seen whether the market will embrace this development. With stablecoins being a roughly $310 billion asset class dominated by USD-denominated tokens, the question is whether regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement and build the necessary network effects to compete.