The Hong Kong government has issued its inaugural stablecoin licenses to two major financial institutions, HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands, marking a significant milestone in the region's fintech landscape. The approvals, made by the Hong Kong Monetary Authority, the territory's central bank, represent the first batch of licenses granted under the Stablecoins Ordinance, which took effect in August 2025. According to HKMA chief executive Eddie Yue, the newly licensed issuers are expected to launch their businesses in accordance with their plans, while also ensuring the proper management of risks. Yue expressed hope 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 HKMA received 36 applications and had indicated that only a limited number would be approved in the initial round, 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 only three commercial banks authorized to print Hong Kong dollar banknotes.
The licenses come with one of the world's strictest know-your-customer frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets whose owners have been identity-verified. The travel rule applies to transfers above HK$8,000. This means that HKD stablecoins will likely embed compliance checks into their smart contracts, restricting transfers to wallets listed in an on-chain white list, making them structurally different from freely transferable tokens.
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. Standard Chartered CEO Bill Winters believes 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 agree. With stablecoins being a roughly $310 billion asset class dominated by USD-denominated tokens, Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement.