In a landmark move, Hong Kong has issued its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, as announced on Friday. The approvals, made by the Hong Kong Monetary Authority, the territory's central bank, signify the first batch of licenses under the Stablecoins Ordinance, which was implemented in August 2025. According to HKMA Chief Executive Eddie Yue, "We anticipate the licensed issuers will initiate their operations as planned, exploring growth opportunities while effectively managing risks." The regulator assessed 36 applications and initially signaled that only a limited number would be approved, prioritizing robust risk management, high-quality reserves, and stringent anti-money-laundering controls.
The decision to initially license note-issuing banks, such as HSBC and Standard Chartered, appears to be a deliberate move, given their historical role in printing Hong Kong dollar banknotes. The HKMA's Eddie Yue previously drew parallels between the historical context of private banks issuing currency and the modern concept of stablecoins, which function as blockchain-based equivalents with stable value.
The licensed stablecoins will operate under one of the world's strictest Know Your Customer frameworks, allowing transfers only to wallets with verified owners, with the travel rule applying to transactions exceeding HK$8,000. This framework may lead to the integration of compliance checks into smart contracts, restricting transfers to listed wallets, thus differing 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, following an 11-group pilot program that found a weak retail case.
Instead, stablecoins have become a focal point, with Standard Chartered CEO Bill Winters suggesting that Hong Kong's push into stablecoins and tokenized deposits could lay the groundwork for a new era in digital trade settlement. The market's response remains to be seen, given that stablecoins are a $310 billion asset class dominated by USD-denominated tokens. Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, but it remains uncertain whether a non-dollar stablecoin can build the necessary network effects to compete.