The Hong Kong government has awarded its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, marking a significant milestone for the region's financial sector. The Hong Kong Monetary Authority, the territory's central bank, has approved these licenses under the Stablecoins Ordinance that took effect in August 2025.
HKMA Chief Executive Eddie Yue expressed his anticipation for the licensed issuers to launch their operations, exploring growth opportunities while effectively managing risks. Yue also 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 HKMA evaluated 36 applications and had indicated that the initial round of approvals would be limited, prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to initially license the city's note-issuing banks appears to be a deliberate move, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes. The licenses are accompanied by one of the world's strictest know-your-customer frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets whose owners have undergone identity verification. The travel rule applies to transfers exceeding HK$8,000.
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, making them structurally different from freely transferable tokens. The bank-led stablecoin model also reflects the HKMA's decision to deprioritize its central bank digital currency for retail use. The focus on stablecoins could potentially lay the foundation for a new era of digital trade settlement, positioning them as a new medium for cross-border commerce. However, whether the market will agree remains to be seen, given that stablecoins are a roughly $310 billion asset class dominated by USD-denominated tokens.