Hong Kong is moving deliberately but meaningfully into regulated digital assets, granting its first stablecoin issuer licenses to HSBC Holdings HSBC and a consortium led by Standard Chartered. Both institutions, which already issue Hong Kong dollar banknotes, were selected from a pool of 36 applicants, according to the Hong Kong Monetary Authority. The decision could position these banks at the front end of a tightly controlled market for Hong Kong dollar-pegged cryptocurrencies, as the city continues to build out its digital asset framework.
The Standard Chartered-led entity, Anchorpoint Financial Ltd., includes partners such as Hong Kong Telecommunications Ltd. and Animoca Brands, combining traditional financial infrastructure with digital asset exposure. The HKMA indicated that the licensed issuers are expected to begin stablecoin issuance around mid- to the second half of 2026, subject to completing preparatory steps. Under the regulatory framework, issuers are required to maintain reserves fully backing the value of stablecoins in circulation, a structure that could be aimed at limiting financial stability risks.
The licensing move builds on Hong Kong’s broader push, first outlined in 2022, to position itself as a global crypto hub, following earlier steps such as exchange licensing by the Securities and Futures Commission in 2023 and the implementation of stablecoin rules last year. HKMA Chief Executive Eddie Yue stated that authorities are maintaining an open yet prudent stance, suggesting that while additional licenses could be granted, the total number may remain limited. This approach contrasts with mainland China, where the People’s Bank of China has prohibited unauthorized yuan-based stablecoins, even as global regulatory momentum continues to build after new legislation in the US.