In a landmark decision, Hong Kong has granted licenses to two major financial institutions, HSBC and Anchorpoint Financial, a Standard Chartered-led joint venture that includes Animoca Brands, to issue stablecoins. This move is seen as a crucial step forward for the region's financial landscape.
The approvals, made by the Hong Kong Monetary Authority (HKMA), are the first under the Stablecoins Ordinance, which came into effect in August 2025. According to HKMA chief executive Eddie Yue, the issuers are expected to launch their businesses while effectively managing risks and exploring growth opportunities. The regulated stablecoins are anticipated to address existing pain points in financial activities, create value for both individuals and businesses, and support the healthy development of digital assets in Hong Kong.
The HKMA assessed 36 applications before making the decision, prioritizing risk management, reserve quality, and anti-money-laundering controls. Notably, the decision to license note-issuing banks first appears to be a deliberate move, with HSBC and Standard Chartered being two of the three authorized commercial banks to print Hong Kong dollar banknotes. The newly licensed stablecoins will operate under one of the world's strictest Know Your Customer (KYC) frameworks for digital money, with licensed stablecoins only transferable to wallets whose owners have undergone identity verification.
Furthermore, the travel rule applies to transfers exceeding HK$8,000 (~$1,000). This framework is expected to lead to the development of stablecoins that embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list.
The focus on stablecoins 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. Instead, the bank-led stablecoin model is positioned as a potential foundation for a new era of digital trade settlement, with regulated, bank-issued HKD stablecoins potentially carving out a role in regional trade settlement.