In a groundbreaking move, Hong Kong has issued its first two stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This development comes after the Hong Kong Monetary Authority assessed 36 applications, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls.
The approved licenses are subject to strict regulations, including a strict identity regime and one of the world's strictest Know Your Customer (KYC) frameworks for digital money. According to HKMA chief executive Eddie Yue, the issuers are expected to launch their businesses while properly managing risks and promoting regulated stablecoins to address pain points in financial and economic activities. The decision to license note-issuing banks first appears to be deliberate, with HSBC and Standard Chartered being two of only three commercial banks authorized to print Hong Kong dollar banknotes. The licenses come with strict guidelines, including the requirement that licensed stablecoins can only be transferred to wallets whose owners have been identity-verified, with the travel rule applying to transfers above HK$8,000.
This development reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, instead focusing on the bank-led stablecoin model. The market's response to this new development remains to be seen, with stablecoins being a roughly $310 billion asset class dominated by USD-denominated tokens.