In a landmark move, Hong Kong has granted its first stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This development follows the introduction of the Stablecoins Ordinance, which came into effect in August 2025. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the regulator is looking forward to the licensed issuers launching their operations and exploring growth opportunities while managing risks effectively.
The HKMA assessed 36 applications before awarding the licenses, prioritizing risk management, reserve quality, and anti-money-laundering controls. By licensing note-issuing banks first, the regulator appears to be adopting a deliberate approach. The decision is seen as a strategic move, given that HSBC and Standard Chartered are two of the three commercial banks authorized to print Hong Kong dollar banknotes.
The licensed stablecoins will be subject to one of the world's strictest Know-Your-Customer (KYC) frameworks, allowing transfers only to wallets whose owners have undergone identity verification. This framework will apply to transfers exceeding HK$8,000. As a result, Hong Kong dollar (HKD) stablecoins are likely to embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain whitelist.
This approach differs significantly 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 (CBDC) for retail use, following an 11-group pilot program that found a weak retail case.
Instead, stablecoins have emerged as a key focus area, with Standard Chartered CEO Bill Winters highlighting their potential to lay the foundation for a new era of digital trade settlement. The market's response to regulated, bank-issued HKD stablecoins remains to be seen, given the dominance of USD-denominated tokens in the stablecoin market. With a market capitalization of approximately $310 billion, stablecoins are a significant asset class, and it is unclear whether a non-dollar stablecoin can build the necessary network effects to compete.