In a landmark move, Hong Kong has awarded its inaugural stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered and including Animoca Brands, as announced on Friday. This development follows the implementation of the Stablecoins Ordinance in August 2025, with the Hong Kong Monetary Authority (HKMA) assessing 36 applications before selecting the first batch of licensees. According to HKMA Chief Executive Eddie Yue, "We anticipate that these issuers will launch their businesses as planned, exploring growth opportunities while effectively managing risks." The regulator aims to promote the use of regulated stablecoins to address financial and economic challenges, create value for individuals and businesses, and support the healthy growth of digital assets in Hong Kong. The decision to prioritize note-issuing banks, such as HSBC and Standard Chartered, reflects the territory's deliberate approach to risk management, reserve quality, and anti-money-laundering controls.
These banks are among the three commercial banks authorized to print Hong Kong dollar banknotes, a system dating back to 1846. The HKMA's strict know-your-customer (KYC) framework for digital money requires licensed stablecoins to be transferred only to wallets with verified owners, with the travel rule applying to transactions above HK$8,000. This approach may lead to the development of compliance checks embedded in smart contracts, restricting transfers to wallets on an on-chain white list.
The bank-led stablecoin model also indicates the HKMA's decision to deprioritize its central bank digital currency (CBDC) for retail use, following an 11-group pilot program that found a weak retail case. Instead, stablecoins have become a key focus, with Standard Chartered CEO Bill Winters suggesting that they could "lay the foundation for a new era of digital trade settlement," positioning them as a medium for cross-border commerce. However, it remains to be seen whether the market will embrace this development, given the dominance of USD-denominated tokens in the stablecoin market. Hong Kong is betting on regulated, bank-issued HKD stablecoins to carve out a role in regional trade settlement, but the question is whether a non-dollar stablecoin can build the necessary network effects to compete.