In a groundbreaking move, Hong Kong has awarded its inaugural 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, "We anticipate that the licensed issuers will initiate their operations in accordance 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 in its assessment. The decision to initially license note-issuing banks, such as HSBC and Standard Chartered, appears to be a deliberate move. These banks have a long history of issuing currency in Hong Kong, dating back to 1846.
The HKMA's approach to stablecoins is centered around a strict identity regime, with one of the world's most stringent Know Your Customer (KYC) frameworks for digital money. Licensed stablecoins can only be transferred to wallets with verified owners, and the travel rule applies to transactions exceeding HK$8,000. This framework may lead to the development of on-chain compliance checks, setting HKD stablecoins apart from other freely transferable tokens.
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 found the retail case to be weak. The focus on stablecoins has become a significant theme in Hong Kong's fintech landscape, with potential applications in cross-border commerce and trade settlement.
However, the success of non-dollar stablecoins, such as the HKD stablecoin, remains to be seen, given the dominance of USD-denominated tokens in the market.