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 that includes Animoca Brands. This development marks the first batch of approvals under the Stablecoins Ordinance, which came into effect in August 2025. According to HKMA chief executive Eddie Yue, the authority looks forward to the licensed issuers launching their businesses and exploring growth opportunities while managing risks effectively.
The regulator assessed 36 applications and prioritized risk management, reserve quality, and anti-money-laundering controls in its decision-making process. The licenses are subject to one of the world's strictest know-your-customer (KYC) frameworks for digital money, requiring identity verification for wallet owners and imposing a travel rule for transfers exceeding HK$8,000. This move reflects the HKMA's decision to focus on stablecoins rather than central bank digital currency (CBDC) for retail use, following an 11-group pilot program that found the retail case for CBDC to be weak.
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. However, it remains to be seen whether the market will embrace this development, given the dominance of USD-denominated tokens in the stablecoin market. With regulated, bank-issued HKD stablecoins, Hong Kong aims to carve out a role in regional trade settlement, but the question is whether a non-dollar stablecoin can build the necessary network effects to compete.