Marking a pivotal step in its vision for digital finance, the Hong Kong Monetary Authority (HKMA) has granted the city’s first regulated stablecoin issuance licenses to HSBC and Anchorpoint Financial. This move opens a new chapter for Hong Kong’s fintech landscape, as these two groups prepare to launch stablecoins firmly under the watch of one of the world’s toughest regulatory regimes. Anchorpoint Financial acts as a consortium led by the globally recognized Standard Chartered and includes the participation of Animoca Brands. Both HSBC and Standard Chartered already hold historic roles in Hong Kong, as they are among the selected banks authorized to issue physical currency in the region.
The new regulatory framework and requirements for stablecoins
Hong Kong’s latest regulations, now regarded among the world’s strictest in terms of identity verification, set the stage for bank-backed stablecoins to operate. Under this law, only wallets that have undergone formal identity checks can receive licensed stablecoins. Transfers of 8,000 Hong Kong dollars or more are subject to the so-called “travel rule,” requiring additional transaction reporting to enhance transparency and combat illicit finance.
Compliance is further woven into the digital DNA of these stablecoins: smart contracts will be programmed to allow transfers only to whitelisted or approved wallets—effectively blocking anonymous or blacklisted transactions. This model sharply contrasts with leading, unrestricted stablecoins such as those tied to the US dollar, whose transfers remain largely without barriers.
Eddie Yue, Chief Executive of the Monetary Authority, stated in his address following the landmark decision that putting regulated stablecoins to use could resolve bottlenecks in financial transactions and deliver tangible benefits both to individuals and corporations across sectors.
We expect authorized stablecoin issuers to launch operations in accordance with their plans, explore new growth opportunities, and manage risks in a balanced manner. In doing so, they will help foster the healthy development of digital assets in Hong Kong, Yue emphasized.
Historical roots and Hong Kong’s digital currency ambitions
The presence of HSBC and Standard Chartered among the licensed issuers is no coincidence. The practice of allowing select private banks to issue currency has deep roots in Hong Kong’s economic history, dating back to the 1800s. The embrace of blockchain-driven stablecoins reflects an evolution of this system, pushing the city into a new digital money era where fintech innovation is harmonized with robust regulation.
Out of a total of 36 applicants for stablecoin licenses, only these two were successful—a testament to the HKMA’s emphasis on risk management and reserve quality. At the same time, Hong Kong is deliberately not prioritizing a central bank digital currency (CBDC) aimed at retail consumers. A government-led digital currency pilot was completed in October, but its limited results in consumer applications shifted the focus toward bank-issued stablecoins as the preferred channel for digital payments innovation.
Bill Winters, the CEO of Standard Chartered, has previously argued that stablecoins and tokenized deposits have the potential to form the new infrastructure of digital commerce in Hong Kong, opening the door to innovative cross-border payment solutions.
It was assessed that Hong Kong’s stablecoin and tokenized deposit initiatives hold significant potential to underpin a new era of digital trade, according to the assessments shared by Standard Chartered’s Winters.
Globally, the stablecoin market now nears $310 billion in capitalization, with virtually all leading tokens pegged to the US dollar. Alternatives pegged to other major currencies, such as the euro or Japanese yen, have yet to achieve comparable prominence in the market.
Hong Kong’s regulators, meanwhile, are intent on fostering the issuance of stablecoins pegged to the Hong Kong Dollar by trusted banks. The goal: facilitate their adoption in regional trade and payments. Yet, it remains uncertain whether stablecoins anchored to currencies other than the US dollar can establish the same powerful network effect and widespread usage as their dollar-denominated counterparts.
