The Hong Kong Monetary Authority has awarded its first two stablecoin issuer licenses to HSBC and a Standard Chartered-led joint venture, Anchorpoint Financial, which includes Animoca Brands, as announced on Friday. The approvals signify the first batch of licenses issued under the Stablecoins Ordinance, enacted in August 2025. According to HKMA Chief Executive Eddie Yue, 'We anticipate the licensed issuers will initiate operations in line with their plans, exploring growth opportunities while effectively managing risks.' Furthermore, Yue expressed hopes that the promotion of regulated stablecoins will address existing pain points in financial and economic activities, create value for both individuals and businesses, and support the healthy development of digital assets in Hong Kong.
Following the assessment of 36 applications, the HKMA has granted licenses to a limited number of applicants, prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to initially license note-issuing banks, including HSBC and Standard Chartered, appears to be a deliberate move. These commercial banks are authorized to print Hong Kong dollar banknotes, a system dating back to 1846. The licensed stablecoins will operate under one of the world's strictest Know Your Customer (KYC) frameworks for digital money, allowing transfers only to wallets with verified ownership.
The travel rule applies to transactions exceeding HK$8,000 (~$1,000). In practice, this may lead to the integration of compliance checks into smart contracts, restricting transfers to wallets listed on an on-chain white list. The bank-led stablecoin model reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, as an 11-group pilot program found the retail case to be weak.
Standard Chartered CEO Bill Winters believes that Hong Kong's push into stablecoins and tokenized deposits could 'lay the foundation for a new era of digital trade settlement,' positioning them as a new medium for cross-border commerce. However, it remains to be seen whether the market will agree. Stablecoins represent a roughly $310 billion asset class, with USD-denominated tokens dominating the market. Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, issued by the same institutions, under the same constraints, on new rails.
The question is whether a non-dollar stablecoin can build the necessary network effects to compete.