In a landmark decision, Hong Kong has awarded its inaugural stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This move follows the implementation of the Stablecoins Ordinance in August 2025. According to HKMA Chief Executive Eddie Yue, the newly licensed issuers are expected to launch their operations in line with their plans, balancing growth opportunities with risk management. Yue expressed hopes that the regulated stablecoins will address existing pain points in financial and economic activities, creating value for both individuals and businesses while supporting the healthy development of digital assets in Hong Kong.
The HKMA received 36 applications for stablecoin licenses and, as anticipated, the initial round of approvals was limited. The decision to prioritize the city's note-issuing banks, such as HSBC and Standard Chartered, appears to be deliberate, given their historical role in issuing Hong Kong dollar banknotes.
The licensing of these banks is seen as a strategic move, with their stablecoins functioning as blockchain-based equivalents of traditional currency. The licenses are subject to one of the world's strictest Know Your Customer (KYC) frameworks for digital money, requiring licensed stablecoins to be transferred only to wallets with verified owners. This framework may lead to the integration of compliance checks into smart contracts, restricting transfers to approved wallets.
The introduction of these stablecoins also reflects 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, the focus has shifted to stablecoins, which are poised to play a significant role in regional trade settlement. With the global stablecoin market valued at approximately $310 billion, the success of Hong Kong's regulated, bank-issued HKD stablecoins in competing with dominant USD-denominated tokens remains to be seen.