In a landmark move, Hong Kong has issued its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, on Friday. The Hong Kong Monetary Authority, the territory's central banking institution, has approved these licenses as part of the first batch under the Stablecoins Ordinance, which was enacted in August 2025. According to Eddie Yue, Chief Executive of the HKMA, "The newly licensed issuers are expected to commence operations in line with their plans, exploring growth opportunities while effectively managing risks." Yue further emphasized, "We anticipate that the promotion of regulated stablecoins will address existing pain points in financial and economic activities, create value for both individuals and businesses, and support the healthy development of digital assets in Hong Kong." The HKMA evaluated 36 applications and had indicated that the initial round of approvals would be limited.
In his February budget address, Financial Secretary Paul Chan stated that only a small number of applicants would be approved, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to license note-issuing banks first appears to be a deliberate move, as HSBC and Standard Chartered are two of the three commercial banks authorized to print Hong Kong dollar banknotes, a system that dates back to 1846. Today, each note-issuing bank deposits U.S.
dollars with the government's Exchange Fund at a fixed rate and receives Certificates of Indebtedness in return, which are used to print banknotes. In a blog post published in December 2023, Yue drew a parallel between pre-1935 banknotes issued by commercial banks in exchange for deposited silver and stablecoins, which function as their blockchain-based equivalent. The licenses granted by the HKMA come with one of the world's strictest Know Your Customer (KYC) frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets whose owners have undergone identity verification. Additionally, the travel rule applies to transfers exceeding HK$8,000.
This means that HKD stablecoins will likely incorporate compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list, making them distinct from freely transferable tokens like USDT or USDC. The bank-led stablecoin model also reflects the HKMA's decision to deprioritize its central bank digital currency for retail use, following an 11-group pilot program that found the retail case to be weak.
The focus on stablecoins marks a significant shift, with Standard Chartered CEO Bill Winters stating 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 respond positively. Stablecoins are a roughly $310 billion asset class, with USD-denominated tokens dominating the market. Data from CoinGecko shows that the largest stablecoins by market capitalization are dollar-pegged, with no euro- or yen-pegged tokens breaking into the top ranks.
Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement, issued by the same institutions, under the same constraints, on new rails. The question is whether a non-dollar stablecoin, however tightly regulated, can build the necessary network effects to compete.