The Hong Kong Monetary Authority has issued its first stablecoin licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, marking a significant milestone in the territory's journey to regulate digital assets. According to HKMA Chief Executive Eddie Yue, the approved issuers are expected to launch their businesses in line with their plans while ensuring proper risk management.
The regulator received 36 applications, but only a limited number were approved in the initial round, with a focus on risk management, reserve quality, and anti-money-laundering controls. By licensing note-issuing banks first, the regulator appears to be adopting a deliberate approach, as HSBC and Standard Chartered are among the three commercial banks authorized to print Hong Kong dollar banknotes.
The HKMA's decision to issue licenses to these banks reflects the parallel between traditional banknotes and stablecoins, which can serve as a medium of exchange on blockchain. The licenses are subject to one of the world's strictest know-your-customer frameworks, requiring licensed stablecoins to be transferred only to wallets with verified owners, and embedding compliance checks into their smart contracts.
This approach differs from that of freely transferable tokens like USDT or USDC, and the HKMA's decision to deprioritize its central bank digital currency for retail use, as the retail case was found to be weak. Instead, the bank-led stablecoin model could lay the foundation for a new era of digital trade settlement, positioning stablecoins as a new medium for cross-border commerce, according to Standard Chartered CEO Bill Winters.