- Hong Kong grants first stablecoin licenses to HSBC and Anchorpoint after reviewing 36 applications.
- HKD stablecoins target cross-border payments, local use, and tokenized asset settlement.
- Strict KYC rules limit transfers to verified wallets with checks above HK$8,000.
Hong Kong has moved ahead with its long-planned stablecoin framework after regulators granted the first issuer licenses to major banking-backed entities, leading to a shift toward regulated digital money tied to the local currency. The rollout, led by the Hong Kong Monetary Authority (HKMA), places traditional financial institutions at the center of the city’s digital asset strategy while introducing strict compliance standards and defined use cases for stablecoins.
The HKMA confirmed that licenses were awarded to The Hong Kong and Shanghai Banking (HSBC) Corporation Limited and Anchorpoint Financial Limited, a joint venture involving Standard Chartered Bank, Hong Kong Telecommunications, and Animoca Brands.
These approvals follow a review process that assessed 36 applications submitted by the September 2025 deadline. Regulators stated that both entities met the requirements for risk management capabilities, regulatory compliance, and viable business models.
Focus on Payments and Tokenized Markets
In the initial phase, both issuers plan to launch Hong Kong dollar-referenced stablecoins. Proposed use cases include cross-border payments, where issuers aim to leverage existing banking networks to improve efficiency and transparency. Local payment applications are also expected, with integration into existing infrastructure to support faster transaction settlement.
The framework further allows stablecoins to be used in tokenized asset trading, enabling real-time settlement and improved liquidity management. Additional use cases include programmable payments and applications such as supply chain financing.
Bank-Led Model Reflects Policy Direction
HSBC and Standard Chartered are among the institutions authorized to issue Hong Kong dollar banknotes, a system dating back to the 19th century. Under this arrangement, banks deposit U.S. dollars with the Exchange Fund and receive Certificates of Indebtedness to back the currency they issue.
Officials have drawn similarities between historical forms of privately issued money and blockchain-based stablecoins, describing them as modern equivalents designed for digital transactions.
In addition, the licensed stablecoins will operate under stringent identity verification rules. Transfers will only be permitted between wallets that have undergone full identity checks, with additional requirements applied to transactions exceeding HK$8,000. This structure may require issuers to embed compliance mechanisms directly into smart contracts, limiting transfers to approved participants.
Related: Dubai Releases Updated Guidelines for RWA and Stablecoin Issuance
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