The Hong Kong Monetary Authority has granted licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, to issue stablecoins. This move marks the first batch of approvals under the Stablecoins Ordinance.
According to HKMA Chief Executive Eddie Yue, the authority looks forward to the licensed issuers launching their businesses while managing risks effectively. The decision to prioritize risk management, reserve quality, and anti-money-laundering controls was emphasized by Financial Secretary Paul Chan. Notably, the initial round of approvals focused on the city's note-issuing banks, with the regulator drawing parallels between traditional note-issuing and stablecoins as a form of private money. The licensed stablecoins will operate under one of the world's strictest Know-Your-Customer frameworks, with transfers restricted to identity-verified wallets.
This development also reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, instead focusing on stablecoins as a potential medium for cross-border commerce. The market's response to these regulated, bank-issued stablecoins remains to be seen, particularly in competing with USD-denominated tokens that dominate the stablecoin market.