In a significant development, Hong Kong has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, as announced on Friday. This move follows the implementation of the Stablecoins Ordinance in August 2025, with the Hong Kong Monetary Authority (HKMA) assessing 36 applications before granting these initial approvals. According to HKMA Chief Executive Eddie Yue, "We anticipate that the licensed issuers will initiate their operations as planned, exploring opportunities for growth while effectively managing risks." The regulator emphasized the importance of proper risk management, high-quality reserves, and robust anti-money-laundering controls in the approval process.
Notably, the decision to license note-issuing banks first, such as HSBC and Standard Chartered, appears to be a deliberate choice, given their historical role in printing Hong Kong dollar banknotes. The licensed stablecoins will be subject to one of the world's strictest Know Your Customer (KYC) frameworks, requiring identity verification for wallet owners and imposing transfer restrictions above a certain threshold. This approach differs significantly from freely transferable tokens like USDT or USDC.
Furthermore, the focus on stablecoins reflects the HKMA'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 introduction of regulated, bank-issued HKD stablecoins aims to carve out a role in regional trade settlement, but it remains to be seen whether these non-dollar stablecoins can build the necessary network effects to compete in the market.