The Hong Kong Monetary Authority has granted licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered, marking a significant milestone in the territory's journey to regulate stablecoins. The move is expected to pave the way for the growth of digital assets in Hong Kong.
According to HKMA chief executive Eddie Yue, the issuers are expected to launch their businesses while managing risks effectively. The regulator had assessed 36 applications before selecting the first batch of licensees, prioritizing risk management and anti-money-laundering controls. The decision to license note-issuing banks first is seen as a deliberate move, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes.
The licensed stablecoins will be subject to one of the world's strictest know-your-customer frameworks, with transfers restricted to wallets whose owners have been identity-verified. This development is also seen as a shift in focus from central bank digital currency to stablecoins, with the HKMA deprioritizing its retail CBDC plans. The market will be watching to see if regulated, bank-issued HKD stablecoins can carve out a niche in regional trade settlement and compete with dominant USD-denominated tokens.