In a historic move, Hong Kong has granted its inaugural stablecoin issuer licenses to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. This development follows the introduction of the Stablecoins Ordinance in August 2025, which has paved the way for regulated stablecoins in the region.
According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the approved issuers are expected to launch their operations in accordance with their plans, while effectively managing associated risks. The HKMA has emphasized the importance of exploring growth opportunities and promoting regulated stablecoins to address pain points in financial and economic activities, ultimately supporting the healthy development of digital assets in Hong Kong.
Out of 36 applications, the HKMA has selected the first batch of licensees, prioritizing risk management, reserve quality, and anti-money-laundering controls. The decision to initially license note-issuing banks, such as HSBC and Standard Chartered, appears to be a deliberate move, given their established history of printing Hong Kong dollar banknotes.
The licensed stablecoins will be subject to one of the world's strictest Know Your Customer (KYC) frameworks, requiring identity verification for wallet owners and restricting transfers above a certain threshold. This approach differs significantly from other freely transferable tokens, such as USDT or USDC.
The focus on 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 the retail case to be weak. Instead, the bank-led stablecoin model is poised to play a key role in regional trade settlement, potentially laying the foundation for a new era of digital trade settlement. However, the success of non-dollar stablecoins in competing with dominant USD-denominated tokens remains to be seen.