In a landmark development, Hong Kong has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, as announced on Friday. The approvals, granted by the Hong Kong Monetary Authority (HKMA), the territory's central bank, signify the first batch of licenses issued under the Stablecoins Ordinance, which became effective in August 2025. According to HKMA Chief Executive Eddie Yue, 'We anticipate that the licensed issuers will initiate their operations as planned, exploring growth opportunities while effectively managing associated risks.' Furthermore, Yue expressed hope that 'the promotion of regulated stablecoins will address existing pain points in financial and economic activities, generate value for both individuals and businesses, and support the healthy development of digital assets in Hong Kong.' The HKMA reviewed 36 applications and had indicated that the initial round of approvals would be limited. In his February budget address, Financial Secretary Paul Chan stated that only a small number of applicants would be approved, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls.
The decision to license note-issuing banks first appears to be a deliberate move. HSBC and Standard Chartered are two of the three commercial banks authorized to print Hong Kong dollar banknotes, a system established in 1846. Today, each note-issuing bank deposits U.S.
dollars with the government's Exchange Fund at a fixed rate and receives Certificates of Indebtedness in return, against which it prints banknotes. In a December 2023 blog post, Yue drew parallels between pre-1935 banknotes issued by commercial banks and stablecoins, describing them as a form of 'private money' and blockchain-based equivalent.
The licenses are subject to one of the world's strictest Know Your Customer (KYC) frameworks for digital money. Under the HKMA's Anti-Money Laundering (AML) guidelines, licensed stablecoins can only be transferred to wallets whose owners have undergone identity verification. The travel rule applies to transfers exceeding HK$8,000 (~$1,000). 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.
The bank-led stablecoin model reflects the HKMA's decision to deprioritize its central bank digital currency for retail use. Instead, the focus is on stablecoins, which were a major topic at Hong Kong Fintech Week.
Standard Chartered CEO Bill Winters stated 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 a market capitalization of approximately $310 billion, USD-denominated tokens dominate the stablecoin market.
Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement. The question is whether a non-dollar stablecoin can build the necessary network effects to compete.