HSBC and Standard Chartered Consortium Secure Hong Kong's First Stablecoin Issuer Licenses

Hong Kong has issued its first two stablecoin issuer licenses, with the Hong Kong Monetary Authority (HKMA) approving HSBC and Anchorpoint Financial, a joint venture led by Standard Chartered that also includes Animoca Brands and Hong Kong Telecommunications. The approvals were granted on Friday under the Stablecoins Ordinance, which took effect in August 2025. The HKMA picked the two licensees from 36 applicants. Both are authorized to issue stablecoins pegged to the Hong Kong dollar. The outcome stands out because HSBC and Standard Chartered are among the only three commercial banks permitted to issue physical Hong Kong dollar banknotes, a system in place since 1846. HKMA Deputy Chief Executive Darryl Chan said the two applicants' traditional finance and risk-management experience aligns with stablecoins' goal of linking traditional and digital finance. Hong Kong's rules impose stringent requirements. Stablecoins must be fully backed by high-quality liquid assets such as cash, bank deposits, or short-term government securities. Issuers must hold at least HK$25 million in paid-up capital and keep liquid capital sufficient to cover 12 months of operating expenses. Token holders must be able to redeem at par within one business day. Issuers are barred from paying interest or offering yield on stablecoin balances, and algorithmic stablecoins are not eligible for licensing. Financial Secretary Paul Chan signaled in his February budget address that the first batch of licenses would be limited, with regulators focusing on risk management, reserve quality, and anti-money-laundering controls. HSBC said its HKD stablecoin will be integrated into PayMe and HSBC HK Mobile Banking in the second half of 2026, giving retail customers direct access. Anchorpoint said it plans to distribute its token through selected business partners. The global stablecoin market now exceeds $311 billion, with USD-denominated tokens making up nearly all of the total. Hong Kong is positioning regulated, bank-issued HKD stablecoins as a potential tool for regional trade settlement. The licensing move also comes as mainland China explores renminbi-backed stablecoins via Hong Kong, and as state-owned enterprises such as China National Petroleum Corporation study stablecoin use for cross-border payments. This article was written with the assistance of AI workflows. All stories are curated, edited and fact-checked by a human.