In a groundbreaking move, Hong Kong has issued its inaugural stablecoin licenses to two prominent financial institutions: HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and backed by Animoca Brands. This development follows the introduction of the Stablecoins Ordinance in August 2025, which has paved the way for the regulation of stablecoins in the region. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the newly licensed issuers are expected to launch their operations in accordance with their plans, balancing growth opportunities with prudent risk management. The HKMA's decision to approve these licenses marks the first batch under the Stablecoins Ordinance, with the regulator prioritizing a rigorous assessment of 36 applications.
The authority has emphasized the importance of risk management, reserve quality, and anti-money-laundering controls in its evaluation process. Notably, the licenses have been awarded to note-issuing banks, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes, a privilege that dates back to 1846. The HKMA's Chief Executive drew parallels between the historical context of private banks issuing currency backed by silver deposits and the modern concept of stablecoins, which function as blockchain-based equivalents with stable value.
The licensed stablecoins will operate under one of the world's strictest Know-Your-Customer (KYC) frameworks, with transfers restricted to wallets whose owners have undergone identity verification. Furthermore, the travel rule will apply to transactions exceeding HK$8,000 (~$1,000), necessitating the implementation of compliance checks within smart contracts. This approach differs significantly from the more 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 revealed a weak retail case. Instead, stablecoins have emerged as a key focus area, with Standard Chartered's CEO, Bill Winters, highlighting their potential to lay the foundation for a new era of digital trade settlement.
Whether the market will respond positively to this development remains to be seen, given the dominance of USD-denominated tokens in the stablecoin market. Hong Kong's regulated, bank-issued HKD stablecoins will need to carve out a niche in regional trade settlement, competing with established players in the market.