In a landmark move, Hong Kong has awarded its first stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands, as announced on Friday. This development follows the implementation of the Stablecoins Ordinance in August 2025. According to Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), the regulator expects the licensed issuers to launch their businesses while effectively managing associated risks.
Yue expressed 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 growth of digital assets in Hong Kong. The HKMA evaluated 36 applications, prioritizing risk management, reserve quality, and anti-money-laundering controls, and deliberately chose to license note-issuing banks first.
This decision is notable, given that HSBC and Standard Chartered are among the select few commercial banks authorized to print Hong Kong dollar banknotes, a privilege dating back to 1846. The licensed stablecoins will operate under one of the world's strictest Know Your Customer (KYC) frameworks, requiring identity verification for wallet owners and imposing a travel rule for transfers exceeding HK$8,000. This framework will likely lead to the integration of compliance checks into smart contracts, restricting transfers to verified wallets. The focus on stablecoins also reflects the HKMA's decision to deprioritize its central bank digital currency (CBDC) for retail use, following a pilot program that found the retail case to be weak.
The introduction of regulated, bank-issued HKD stablecoins is expected to play a role in regional trade settlement, but it remains to be seen whether these stablecoins can build the necessary network effects to compete in a market dominated by USD-denominated tokens.