In a landmark decision, Hong Kong has issued its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands, as announced on Friday. This development marks the first batch of approvals under the Stablecoins Ordinance, which came into effect in August 2025. According to HKMA Chief Executive Eddie Yue, "We anticipate that the licensed issuers will initiate their operations as planned, exploring growth opportunities while effectively managing risks." Yue further expressed his hopes that the promotion of regulated stablecoins will address pain points in financial and economic activities, creating value for individuals and businesses and supporting the healthy development of digital assets in Hong Kong.
The HKMA evaluated 36 applications and had indicated that the initial round of approvals would be limited, prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to license note-issuing banks first appears to be a deliberate move, given that HSBC and Standard Chartered are two of only three commercial banks authorized to print Hong Kong dollar banknotes. The licenses are subject to one of the world's strictest know-your-customer (KYC) frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets whose owners have undergone identity verification.
This strict regime may lead to HKD stablecoins embedding compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list. The bank-led stablecoin model also reflects the HKMA's decision to deprioritize its central bank digital currency for retail use.
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, given that stablecoins are a roughly $310 billion asset class dominated by USD-denominated tokens. Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement, but the question is whether a non-dollar stablecoin can build the necessary network effects to compete.