In a significant development for Hong Kong's financial sector, the territory has granted its first two stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This move marks the first batch of approvals under the Stablecoins Ordinance, which came into effect in August 2025. The Hong Kong Monetary Authority's chief executive, Eddie Yue, expressed optimism about the potential of these stablecoins, stating that they could address pain points in financial and economic activities and support the development of digital assets in Hong Kong.
The decision to license these stablecoins is seen as a deliberate move, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls. The licenses are subject to one of the world's strictest KYC frameworks for digital money, with identity verification required for wallet owners and a travel rule applying to transfers above HK$8,000. 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 success of these stablecoins will depend on their ability to build network effects and compete with USD-denominated tokens, which currently dominate the market.