In a landmark move, Hong Kong has issued its first stablecoin licenses to two prominent financial institutions: HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands. This development follows the introduction of the Stablecoins Ordinance in August 2025. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, the licensed issuers are expected to launch their operations in line with their plans, while also ensuring proper risk management.
Yue expressed hopes that the promotion of regulated stablecoins will address existing pain points in financial and economic activities, create value for individuals and businesses, and support the healthy growth 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, given their historical role in issuing Hong Kong dollar banknotes. The licensed stablecoins will operate under one of the world's strictest Know Your Customer (KYC) frameworks, with transfers restricted to wallets whose owners have undergone identity verification. This framework is expected to result in the embedding of compliance checks into smart contracts, distinguishing these stablecoins from freely transferable tokens.
Furthermore, the bank-led stablecoin model reflects the Hong Kong Monetary Authority's decision to deprioritize its central bank digital currency for retail use, following an 11-group pilot program that found the retail case to be weak. The development of stablecoins is seen as a potential foundation for a new era of digital trade settlement, with Standard Chartered CEO Bill Winters positioning them as a medium for cross-border commerce.
However, it remains to be seen whether the market will embrace these regulated, bank-issued stablecoins, particularly in a market dominated by USD-denominated tokens.