Karla Barker 
Hong Kong’s First Stablecoin Licenses Issued
Hong Kong’s central bank, the Hong Kong Monetary Authority, has approved the first two stablecoin issuer licenses under its new regulatory framework. The licenses went to HSBC and a consortium led by Standard Chartered called Anchorpoint Financial, which includes Animoca Brands as a partner.
This marks a significant step for Hong Kong’s digital asset ambitions. The Stablecoins Ordinance only took effect in August 2025, and the HKMA reviewed 36 applications before selecting these initial licensees. Financial Secretary Paul Chan had indicated earlier this year that only “a small number” would be approved in this first round.
HKMA chief executive Eddie Yue commented on the approvals, saying the authority looks forward to the issuers launching their businesses according to their plans. He emphasized the importance of exploring growth opportunities while properly managing risks. Yue also expressed hope that regulated stablecoins would address pain points in financial activities and support healthy digital asset development in Hong Kong.
Bank-Led Approach with Historical Parallels
The choice of HSBC and Standard Chartered appears deliberate. These are two of only three commercial banks authorized to print Hong Kong dollar banknotes, a system dating back to 1846. Back then, private banks issued currency backed by silver deposits when there was no colonial central bank.
Yue drew an interesting parallel in a 2023 blog post. He noted that pre-1935 banknotes issued by commercial banks in exchange for deposited silver were a form of “private money.” Stablecoins, he suggested, function as their blockchain-based equivalent—tokens with stable value that can serve as a medium of exchange on-chain.
Today’s system works differently, of course. Each note-issuing bank deposits U.S. dollars with the government’s Exchange Fund at the fixed rate of HK$7.80 per dollar. They receive Certificates of Indebtedness in return, against which they print banknotes.
Strict Identity Requirements
The licenses come with what might be one of the world’s strictest KYC frameworks for digital money. Under the HKMA’s anti-money laundering guidelines, licensed stablecoins can only be transferred to wallets whose owners have been identity-verified. The travel rule applies to transfers above HK$8,000, which is roughly $1,000.
In practical terms, this means Hong Kong dollar stablecoins will likely embed compliance checks directly into their smart contracts. They’ll probably restrict transfers to wallets listed in an on-chain white list. This makes them structurally different from freely transferable tokens like USDT or USDC.
This bank-led stablecoin model also reflects a strategic shift. The HKMA seems to be deprioritizing its central bank digital currency for retail use. An 11-group pilot program completed in October found the retail case for CBDCs was weak.
Market Challenges Ahead
Standard Chartered CEO Bill Winters has suggested that Hong Kong’s push into stablecoins and tokenized deposits could “lay the foundation for a new era of digital trade settlement.” He positioned them as a new medium for cross-border commerce.
But whether the market agrees remains to be seen. Stablecoins are currently a roughly $310 billion asset class, and USD-denominated tokens dominate nearly all of it. Data from CoinGecko shows that the largest stablecoins by market cap are dollar-pegged, with no euro- or yen-pegged tokens breaking into the top ranks.
Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement. They’re issued by the same institutions, under the same constraints, but on new blockchain rails.
The real question, I think, is whether a non-dollar stablecoin—however tightly regulated—can build the network effects needed to compete. It’s an interesting experiment, but the dominance of dollar-pegged stablecoins creates a significant hurdle.
Perhaps the strict identity requirements will appeal to institutional users who prioritize compliance over convenience. Or maybe the regional trade settlement angle will find traction. Only time will tell if this approach gains meaningful adoption beyond Hong Kong’s borders.