Hong Kong has awarded its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. The Hong Kong Monetary Authority, the territory's central bank, has given the green light to these two applicants. In a statement, HKMA Chief Executive Eddie Yue expressed his enthusiasm, saying, "We look forward to the licensed issuers launching their businesses according to plan, exploring growth opportunities while effectively managing risks." Yue added, "We hope the promotion of regulated stablecoins will address pain points in financial and economic activities, creating value for both individuals and businesses and supporting the healthy development of digital assets in Hong Kong." The HKMA reviewed 36 applications and had indicated that the initial round of approvals would be limited. Financial Secretary Paul Chan had mentioned in his February budget address that only a small number of applicants would be approved, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls.
The decision to license note-issuing banks first appears to be a deliberate choice, as HSBC and Standard Chartered are two of the three commercial banks authorized to print Hong Kong dollar banknotes. This system dates back to 1846, when private banks began issuing currency backed by silver deposits. The HKMA has implemented a strict identity regime, with one of the world's strictest Know-Your-Customer frameworks for digital money. Licensed stablecoins can only be transferred to wallets whose owners have undergone identity verification.
The travel rule applies to transfers exceeding HK$8,000. In practice, this means that HKD stablecoins will likely embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain whitelist.
This approach makes 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. Whether the market agrees remains to be seen, as 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, issued by the same institutions, under the same constraints, on new rails.