In a landmark decision, Hong Kong has issued its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that also includes Animoca Brands. This move follows the implementation of the Stablecoins Ordinance in August 2025.
According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, the regulatory body is looking forward to the licensed issuers commencing operations in line with their plans, while effectively managing associated risks. The approval of these licenses is part of a broader effort to promote the development of digital assets in Hong Kong, with a focus on regulated stablecoins that can address existing challenges in financial and economic activities.
The Hong Kong Monetary Authority evaluated 36 applications before selecting the first batch of licensees, prioritizing robust risk management, high-quality reserves, and stringent anti-money-laundering controls. Notably, the decision to initially license note-issuing banks such as HSBC and Standard Chartered reflects a deliberate approach, given their historical role in issuing Hong Kong dollar banknotes. The licensed stablecoins will operate under one of the world's most stringent Know-Your-Customer frameworks, with restrictions on transfers to unverified wallets and the implementation of the travel rule for transactions exceeding HK$8,000. This setup is expected to differentiate HKD stablecoins from other freely transferable tokens.
Furthermore, the emphasis on stablecoins aligns with the Hong Kong Monetary Authority's decision to deprioritize the development of a central bank digital currency for retail use, following a pilot program that indicated a weak retail case. The introduction of stablecoins is seen as a potential foundation for a new era of digital trade settlement, with regulated, bank-issued HKD stablecoins aiming to carve out a niche in regional trade settlement.
However, the success of these stablecoins in competing with dominant USD-denominated tokens remains to be seen.