The Hong Kong Monetary Authority has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This move marks the first batch of approvals under the Stablecoins Ordinance, which was enacted in August 2025. According to Eddie Yue, Chief Executive of the HKMA, "We look forward to the licensed issuers commencing operations in line with their plans, exploring growth opportunities while effectively managing risks." The HKMA received 36 applications and prioritized risk management, reserve quality, and anti-money-laundering controls.
By licensing note-issuing banks first, the regulator appears to be taking a deliberate approach. The decision reflects the historical context of Hong Kong's banking system, where commercial banks have been authorized to print banknotes since 1846. Today, these banks deposit US dollars with the government's Exchange Fund and receive Certificates of Indebtedness in return, which they use to print banknotes. The licensed stablecoins will be subject to one of the world's strictest Know Your Customer (KYC) frameworks, requiring identity verification for wallet owners and restricting transfers above HK$8,000.
This framework will likely lead to the development of compliance checks embedded in smart contracts, distinguishing HKD stablecoins from freely transferable tokens like USDT or USDC. The bank-led stablecoin model also indicates the HKMA's decision to deprioritize its central bank digital currency (CBDC) for retail use, following an 11-group pilot program that found the retail case to be weak. Instead, the focus has shifted to stablecoins, which could potentially lay the foundation for a new era of digital trade settlement.
With a market size of approximately $310 billion, the success of non-dollar stablecoins, such as the regulated HKD stablecoins, will depend on their ability to build network effects and compete with dominant dollar-pegged tokens.