In a significant development, Hong Kong has granted its first stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This move marks the first batch of approvals under the Stablecoins Ordinance, which was implemented in August 2025. According to Eddie Yue, the chief executive of the Hong Kong Monetary Authority (HKMA), the regulator is looking forward to the licensed issuers launching their businesses and exploring growth opportunities while managing risks effectively. The HKMA chief executive expressed hopes that the promotion of regulated stablecoins will address existing pain points in financial and economic activities, create value for individuals and businesses, and support the healthy development of digital assets in Hong Kong.
The decision to license note-issuing banks first appears to be a deliberate move, with HSBC and Standard Chartered being two of the three commercial banks authorized to print Hong Kong dollar banknotes. The licenses come with strict Know Your Customer (KYC) requirements, with licensed stablecoins only allowed to be transferred to wallets whose owners have undergone identity verification. This means that Hong Kong dollar (HKD) stablecoins will likely embed compliance checks into their smart contracts, restricting transfers to wallets listed on an on-chain whitelist. The bank-led stablecoin model reflects the HKMA's decision to deprioritize its central bank digital currency (CBDC) for retail use.
Instead, the focus is on stablecoins, which could lay the foundation for a new era of digital trade settlement. However, whether the market will agree with this approach remains to be seen, given that USD-denominated tokens currently dominate the stablecoin market. Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement, but it is uncertain whether a non-dollar stablecoin can build the necessary network effects to compete.