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 and including Animoca Brands. This development follows the implementation of the Stablecoins Ordinance in August 2025. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the approved issuers are expected to launch their businesses while adhering to strict risk management and regulatory requirements. The HKMA received 36 applications and prioritized risk management, reserve quality, and anti-money-laundering controls in its assessment.
The decision to license note-issuing banks first, such as HSBC and Standard Chartered, appears to be a deliberate move, given their historical role in printing Hong Kong dollar banknotes. The licensed stablecoins will operate under one of the world's strictest Know-Your-Customer (KYC) frameworks, with transfers restricted to identity-verified wallets. This approach differs significantly from other freely transferable tokens. The focus on stablecoins also reflects the HKMA's decision to deprioritize the development of a central bank digital currency (CBDC) for retail use.
Standard Chartered CEO Bill Winters believes that stablecoins and tokenized deposits could pave the way for a new era of digital trade settlement, positioning them as a medium for cross-border commerce. However, it remains to be seen whether the market will embrace this development, given the dominance of USD-denominated tokens in the stablecoin market. Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, but the question is whether a non-dollar stablecoin can achieve the necessary network effects to compete.