The Hong Kong Monetary Authority (HKMA) has taken a landmark step in crypto regulation by awarding the city's first stablecoin issuer licenses. On April 10, 2026, at 5 p.m., the HKMA announced the first two approved issuers: banking giant HSBC and Anchrpoint Financial, a consortium led by Standard Chartered that includes blockchain gaming firm Animoca Brands.
This marks the first batch of approvals under Hong Kong's Stablecoins Ordinance, which came into effect in August 2025. The HKMA received a total of 36 applications but signaled from the outset that the initial round would be highly selective, with Financial Secretary Paul Chan stating in February that only "a small number" would be approved. The regulator prioritized stringent risk management, reserve quality, and anti-money laundering controls.
HKMA Chief Executive Eddie Yue emphasized the cautious approach, stating, "We look forward to the issuers launching business according to their plans, exploring growth opportunities while properly managing risks." He added that the promotion of regulated stablecoins should "address pain points in financial and economic activities, create values for both individuals and businesses, and support the healthy development of digital assets in Hong Kong."
The choice of issuers is deliberate. HSBC and Standard Chartered are two of only three commercial banks authorized to issue Hong Kong dollar banknotes, a system dating back to 1846. Yue has previously drawn parallels between this historical role and stablecoins, describing pre-1935 banknotes issued by commercial banks as a form of "private money" and stablecoins as their blockchain-based equivalent.
The licenses come with one of the world's strictest KYC frameworks for digital money. Under HKMA 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 (approximately $1,000). In practice, this means Hong Kong dollar-pegged stablecoins will likely embed compliance checks into their smart contracts, restricting transfers to wallets on an on-chain whitelist, making them structurally different from freely transferable tokens like USDT or USDC.
This move also reflects a strategic shift by the HKMA, which has deprioritized its retail central bank digital currency (CBDC) plans following an 11-group pilot program in October that found a weak retail use case. Instead, the focus is now on bank-issued stablecoins. Standard Chartered CEO Bill Winters has positioned them as a foundation for "a new era of digital trade settlement," particularly for cross-border commerce.
Hong Kong is betting that regulated, bank-issued HKD stablecoins can carve out a role in regional trade settlement within the dominant $310 billion dollar-pegged stablecoin market. The success of this first batch will shape the future of Hong Kong's digital asset ambitions and determine if a non-dollar, tightly regulated stablecoin can achieve the necessary network effects.
