The Hong Kong Monetary Authority has granted licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands, to issue stablecoins in the territory. This move 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, exploring growth opportunities while managing risks effectively. The HKMA assessed 36 applications for these licenses, prioritizing risk management, reserve quality, and anti-money-laundering controls.
The decision to license note-issuing banks first may be deliberate, given that HSBC and Standard Chartered are among the few banks authorized to print Hong Kong dollar banknotes. 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 restricting transfers above a certain threshold. This development reflects the HKMA's decision to focus on stablecoins rather than central bank digital currency for retail use. The success of these stablecoins in competing with dollar-pegged tokens remains to be seen, but Hong Kong is betting on regulated, bank-issued HKD stablecoins to play a role in regional trade settlement.