In a landmark move, Hong Kong has issued its first two stablecoin licenses to banking giants HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands, as announced on Friday. This development follows the implementation of the Stablecoins Ordinance in August 2025, with the Hong Kong Monetary Authority (HKMA) at the helm. According to HKMA Chief Executive Eddie Yue, the authority looks forward to the licensees commencing operations in line with their plans, while ensuring the proper management of risks. The introduction of regulated stablecoins is expected to address existing challenges in financial and economic activities, create value for individuals and businesses, and support the healthy growth of digital assets in Hong Kong.
The HKMA received 36 applications, with the initial round being limited. Financial Secretary Paul Chan had previously indicated 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 issue licenses to note-issuing banks first appears to be a deliberate move, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes.
The licensing of stablecoins is subject to one of the world's strictest Know Your Customer (KYC) frameworks for digital money, with licensed stablecoins only being transferable to wallets whose owners have undergone identity verification. The travel rule applies to transfers exceeding HK$8,000. This means that HKD stablecoins will likely incorporate compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list. The bank-led stablecoin model reflects the HKMA's decision to deprioritize its central bank digital currency for retail use.
Standard Chartered CEO Bill Winters has stated that Hong Kong's push into stablecoins and tokenized deposits could lay the foundation for a new era of digital trade settlement. However, it remains to be seen whether the market will embrace this development. The stablecoin market is valued at approximately $310 billion, with USD-denominated tokens dominating the landscape. Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, but it is uncertain whether a non-dollar stablecoin can build the necessary network effects to compete.