In a groundbreaking 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 implementation of the Stablecoins Ordinance in August 2025. According to HKMA Chief Executive Eddie Yue, the newly licensed issuers are expected to launch their operations in accordance with their plans, balancing growth opportunities with risk management.
The HKMA hopes that the introduction of regulated stablecoins will address existing pain points in financial and economic activities, creating value for both individuals and businesses while supporting the healthy development of digital assets in Hong Kong. The licensing process involved the assessment of 36 applications, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls. Notably, the decision to license note-issuing banks first appears to be a deliberate move, as these banks have a long history of issuing currency in Hong Kong.
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 may lead to the implementation of compliance checks in 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. 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 new medium for cross-border commerce.
However, it remains to be seen whether the market will embrace this development, given the dominance of USD-denominated tokens in the stablecoin market. Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement, but the question is whether a non-dollar stablecoin can build the necessary network effects to compete.