The Hong Kong Monetary Authority, the territory's central bank, has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. According to HKMA chief executive Eddie Yue, the newly licensed issuers are expected to launch their businesses in line with their plans while managing risks effectively. Yue expressed hopes that the promotion of regulated stablecoins will address pain points in financial and economic activities and create value for both individuals and businesses, ultimately supporting the healthy development of digital assets in Hong Kong. The HKMA evaluated 36 applications and had indicated that the initial round would be limited, prioritizing risk management, reserve quality, and anti-money-laundering controls.
The decision to license note-issuing banks first appears to be deliberate, with HSBC and Standard Chartered being two of only three commercial banks authorized to print Hong Kong dollar banknotes. The licenses come with strict identity verification requirements, with licensed stablecoins only transferable to wallets whose owners have been verified, and the travel rule applying to transfers above HK$8,000. This means that HKD stablecoins will likely embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list, making them structurally different from freely transferable tokens like USDT or USDC. 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, whether the market agrees remains to be seen, with stablecoins being a roughly $310 billion asset class dominated by USD-denominated tokens. The question is whether a non-dollar stablecoin, however tightly regulated, can build the network effects needed to compete.