The Hong Kong Monetary Authority (HKMA) granted its first two stablecoin issuer licenses on Friday, awarding them to HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands and Hong Kong Telecommunications.
The regulator selected the two from a pool of 36 applicants under the Stablecoins Ordinance, which took effect in August 2025. Both licensees are authorized to issue stablecoins pegged to the Hong Kong dollar.
The decision to award the first licenses to HSBC and Standard Chartered is notable, as both are among the only three commercial banks authorized to print physical Hong Kong dollar banknotes, a system dating back to 1846.
"The two applicants have experience in traditional finance and risk management, which fits the mission of stablecoins that aim to bridge traditional finance and digital finance," said HKMA Deputy Chief Executive Darryl Chan.
Strict Guardrails
Hong Kong's framework imposes tight requirements on issuers. Stablecoins must be fully backed by high-quality liquid assets such as cash, bank deposits, or short-term government securities. Issuers must maintain at least HK$25 million in paid-up capital and hold liquid capital equal to 12 months of operating expenses.
Holders must be able to redeem tokens at par within one business day, and issuers are prohibited from offering interest or yield on stablecoin holdings. The regime also bars algorithmic stablecoins from obtaining a license.
Financial Secretary Paul Chan had signaled in his February budget address that the first batch would be limited, with regulators prioritizing risk management, reserve quality, and anti-money-laundering controls.
Retail and Cross-Border Ambitions
HSBC said its HKD stablecoin will be available inside its PayMe app and HSBC HK Mobile Banking in the second half of 2026, giving retail customers direct access to the token. Anchorpoint plans to distribute through selected business partners.
The broader stablecoin market now exceeds $311 billion, though USD-denominated tokens account for nearly all of it. Hong Kong is betting that bank-issued, regulated HKD stablecoins can carve out a niche in regional trade settlement.
The licensing milestone also comes as mainland China explores renminbi-backed stablecoins through Hong Kong, and as state-owned enterprises like China National Petroleum Corporation study stablecoin use for cross-border payments.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.