The Hong Kong Monetary Authority has issued its inaugural stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, in a move that signifies the first batch of approvals under the Stablecoins Ordinance, which was enacted in August 2025. According to HKMA Chief Executive Eddie Yue, the authority looks forward to the licensees commencing operations in line with their plans, while effectively managing associated risks. The regulator assessed a total of 36 applications and had previously indicated that the initial round of approvals would be limited, with a focus on risk management, reserve quality, and anti-money-laundering controls.
The decision to prioritize the city's note-issuing banks is seen as a deliberate move, given that HSBC and Standard Chartered are among the select few commercial banks authorized to print Hong Kong dollar banknotes. The licenses are subject to one of the world's most stringent Know Your Customer (KYC) frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets whose owners have undergone identity verification. Furthermore, the travel rule applies to transfers exceeding HK$8,000, or approximately $1,000.
In practice, this means that HKD stablecoins will likely incorporate compliance checks into their smart contracts, thereby restricting transfers to wallets listed in an on-chain white list. This approach makes them structurally distinct from freely transferable tokens such as USDT or USDC. 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 concluded in October and found a weak retail case.
Instead, stablecoins have emerged as a key focus area, with Standard Chartered CEO Bill Winters suggesting 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 novel medium for cross-border commerce. However, it remains to be seen whether the market will respond positively to this development. With stablecoins representing a roughly $310 billion asset class, dominated by USD-denominated tokens, the question is whether regulated, bank-issued HKD stablecoins can carve out a niche in regional trade settlement and build the necessary network effects to compete.