Hong Kong has issued its first stablecoin issuer licenses — and the winners are institutions with deep roots in the financial system.
The Hong Kong Monetary Authority (HKMA) on Friday approved licenses for HSBC and Anchorpoint Financial, a Standard Chartered–led joint venture that includes Animoca Brands. These are the first approvals under the Stablecoins Ordinance, which came into force in August 2025, and follow a review of 36 applications. HKMA chief executive Eddie Yue said he expects the new issuers to launch their services “according to their plans” and that regulated stablecoins could help solve practical pain points in payments and commerce while supporting a healthy digital-asset ecosystem.
Why these approvals matter
- Deliberate first picks: HSBC and Standard Chartered are two of only three commercial banks authorized to issue Hong Kong dollar banknotes — a practice dating back to the 19th century. Today those banks back issuance by depositing U.S. dollars with the government’s Exchange Fund at the fixed rate of HK$7.80 per USD and receive Certificates of Indebtedness to print notes. The HKMA has drawn a parallel between that historical “private money” model and blockchain-based stablecoins.
- Tough compliance rules: Hong Kong’s licensing comes with one of the strictest KYC/AML regimes for digital money. Licensed stablecoins can only be transferred to identity-verified wallets, and the travel-rule applies for transfers above HK$8,000 (about $1,000). Practically, HKD stablecoins will likely enforce these checks on-chain via wallet whitelists, making them structurally different from freely transferable tokens like USDT or USDC.
- Policy context: The bank-led approach reflects the HKMA’s decision to deprioritize a retail central bank digital currency (CBDC) after an 11-group pilot completed in October found a weak retail case. Stablecoins, rather than CBDCs, have emerged as the focus at recent fintech forums in the city.
Market implications and open questions
- Trade settlement potential: Standard Chartered’s push — echoed by CEO Bill Winters — frames regulated, bank-issued stablecoins and tokenized deposits as a foundation for a new era of digital trade settlement and cross-border commerce. Hong Kong is betting that tightly regulated HKD stablecoins issued by established banks can win a role in regional settlement.
- Network-effect challenge: The broader stablecoin market is roughly $310 billion and is overwhelmingly dominated by USD-pegged tokens. CoinGecko and other data sources show dollar-pegged stablecoins occupy the top market-cap ranks; euro- or yen-pegged tokens have not broken through. Whether a non-dollar, highly regulated HKD stablecoin can attract the liquidity and usage needed to compete remains an open question.
Regulatory selectivity
Financial Secretary Paul Chan had signaled that the regulator would approve only “a small number” of applicants and that risk management, reserve quality, and AML controls would be prioritized. The HKMA’s initial selection of note-issuing banks looks consistent with that cautious, control-oriented approach.
Bottom line
Hong Kong’s first licensed stablecoins are bank-led, regulated and designed to operate on-chain with strict identity controls. The move could accelerate tokenized settlement in the region, but the long-term success of an HKD stablecoin will depend on real-world adoption and whether it can overcome entrenched USD network effects.
UPDATE (April 10, 10:15 UTC): Description of Anchorpoint amended from consortium to joint venture.
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