In a landmark move, 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 development follows the introduction of the Stablecoins Ordinance in August 2025.
According to HKMA Chief Executive Eddie Yue, "We anticipate that these issuers will initiate their operations as planned, exploring growth opportunities while effectively managing risks." The regulator assessed 36 applications and has emphasized the importance of risk management, reserve quality, and anti-money-laundering controls. By licensing note-issuing banks first, Hong Kong appears to be adopting a deliberate approach.
The city's note-issuing banks, including HSBC and Standard Chartered, have a long history dating back to 1846 when private banks began issuing currency backed by silver deposits. Today, these banks deposit U.S. dollars with the government's Exchange Fund and receive Certificates of Indebtedness in return, against which they print banknotes.
In a December 2023 blog post, Yue drew parallels between pre-1935 banknotes issued by commercial banks and stablecoins, highlighting their role as a medium of exchange. 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 undergone identity verification.
This framework applies to transfers exceeding HK$8,000 (~$1,000). As a result, HKD stablecoins are likely to embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list. This approach differs significantly from 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 (CBDC) for retail use, following an 11-group pilot program that found the retail case to be weak.
Instead, stablecoins have become a key focus, with Standard Chartered CEO Bill Winters suggesting that Hong Kong's push into stablecoins and tokenized deposits could lay the foundation for a new era of digital trade settlement. The market's response remains to be seen, with stablecoins constituting a $310 billion asset class dominated by USD-denominated tokens.
Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, but it remains uncertain whether a non-dollar stablecoin can build the necessary network effects to compete.