When Hong Kong grants its first stablecoin licenses to traditional banks rather than tech companies or crypto startups, you’re watching a government choose regulatory control over rapid innovation
The First Licenses Under Hong Kong’s Stablecoin Regime
Hong Kong has issued its first licenses for fiat-backed stablecoins, marking a significant step in the city’s effort to develop regulated digital currencies for global finance and trade. The Hong Kong Monetary Authority (HKMA) approved HSBC and a joint venture led by Standard Chartered to issue stablecoins backed by the Hong Kong dollar under the city’s new stablecoin regime, which became effective in August 2025.
Stablecoins are a type of cryptocurrency designed to maintain a constant value and are usually pegged to a fiat currency such as the U.S. dollar.
Both firms are expected to launch stablecoins in the second half of 2026 to cover cross-border and local use cases, as well as digital asset trading, according to HKMA, the territory’s de facto central bank.
Why HKMA Chose Banks First
Granting the first licenses to two traditional banks reflects Hong Kong’s effort to balance its push to become a global virtual asset center while remaining mindful about the risk of money laundering.
HKMA is “open but cautious” about issuing more licenses in the future, Daryl Ho, executive director for monetary management at HKMA, said at a press briefing, adding that the number of additional licenses would be “very limited.”
The authority received a total of 36 stablecoin license applications last year. By approving only two, HKMA established a selective approach that prioritizes institutional credibility and regulatory oversight over rapid ecosystem expansion.
That selectivity signals that Hong Kong’s stablecoin ecosystem will prioritize established financial institutions with proven compliance frameworks.
What HSBC Plans to Build
HSBC’s stablecoin will be available on the bank’s two mobile apps: PayMe and HSBC HK Mobile Banking. The bank plans to offer retail customers and merchants more flexible and secure options via stablecoins.
Such services include peer-to-peer payments, customer-to-merchant payments, and tokenized investments.
Integrating a stablecoin into existing retail banking apps means Hong Kong residents could access blockchain-based payments without downloading separate wallets or navigating crypto-native platforms. The user experience will feel like a bank transfer, but the underlying rails will be blockchain infrastructure.
The Standard Chartered Joint Venture
The Standard Chartered joint venture is called Anchorpoint Financial, formed with Animoca Brands and Hong Kong Telecommunications.
In a statement, Anchorpoint said it was going to work with selected businesses to act as distributors to enable public access to its stablecoin.
This distribution model differs from HSBC’s direct-to-consumer approach. By partnering with businesses to distribute the stablecoin, Anchorpoint aims to embed digital Hong Kong dollars into commercial ecosystems—payments platforms, e-commerce sites, and business-to-business settlement systems—rather than relying solely on bank app adoption.
Animoca Brands’ involvement brings blockchain gaming and digital asset experience to the venture, while Hong Kong Telecommunications adds telecom infrastructure and customer reach.
Cross-Border and Local Use Cases
Both stablecoins are designed to support cross-border and local use cases, as well as digital asset trading. Cross-border payments represent one of the primary use cases for stablecoins because they enable faster settlement at lower cost than traditional correspondent banking networks.
A Hong Kong dollar stablecoin issued by a licensed, regulated bank could function as a settlement asset for trade in regions where the Hong Kong dollar is used in commerce. It could also facilitate remittances, treasury operations, and corporate payments where speed and cost efficiency matter.
Local use cases include retail payments, merchant acceptance, and tokenized investments—bringing blockchain rails into everyday financial transactions within Hong Kong itself.
Industry Response
Livio Weng, CEO of Hong Kong-based crypto firm Bitfire, described the stablecoin pilot by note-issuing banks as “a prudent, visionary step that cements stablecoins as the core pillar of Hong Kong’s Web3 ecosystem.”
The word “prudent” captures HKMA’s strategy. By licensing banks first, the authority ensures that the initial stablecoin issuers have comprehensive anti-money laundering controls, capital reserves, and regulatory oversight already in place.
That caution reflects an approach designed to minimize compliance gaps and financial stability concerns associated with stablecoin issuance.
What Happened to the Tech Giants
Reuters reported last year that Chinese tech giants Alibaba-backed Ant Group and e-commerce group JD.com had paused plans to issue stablecoins in Hong Kong after the government raised concerns about the rise of currencies controlled by the private sector.
That pause clarifies HKMA’s priorities. The authority is comfortable with banks issuing stablecoins because banks are already regulated, capitalized, and subject to government oversight. Private tech companies, even large ones, represent a different risk profile—less regulatory control, different business models, and concerns about concentrating monetary functions in entities outside the traditional banking perimeter.
By excluding tech giants from the initial wave of licenses, Hong Kong signals that stablecoin issuance will remain within the regulated financial sector.
The Limited License Strategy
HKMA’s commitment to issuing “very limited” additional licenses creates scarcity in the stablecoin market. With only two issuers approved from 36 applicants, the licensing process functions as a barrier to entry that ensures stablecoin issuance remains concentrated among institutions with proven compliance and risk management capabilities.
This approach prioritizes quality over quantity, emphasizing institutional credibility and regulatory alignment over rapid growth.
What This Means for Hong Kong’s Virtual Asset Strategy
Hong Kong has positioned itself as a global virtual asset center. Stablecoins are a core component of that strategy because they function as the bridge between traditional finance and blockchain-based systems.
By licensing HSBC and Anchorpoint to issue Hong Kong dollar stablecoins, HKMA creates infrastructure that supports tokenized securities, digital asset trading, and blockchain-based payment systems—all of which require stable, liquid settlement assets.
The approval also demonstrates that Hong Kong’s regulatory framework for stablecoins is operational. The territory has licenses issued and stablecoins launching in the second half of 2026.
What Happens in H2 2026
The second half of 2026 will test whether regulated, bank-issued Hong Kong dollar stablecoins can gain adoption. HSBC and Anchorpoint will need to demonstrate that their stablecoins offer value through lower costs, faster settlement, better integration with existing financial systems, or access to markets where Hong Kong dollar liquidity matters.
Success will be measured not just in issuance volume but in adoption for real use cases: cross-border payments that settle faster than traditional rails, merchant acceptance that reduces transaction costs, and tokenized investments that expand access to digital assets.
The licenses are the starting point. The next phase is execution, and that will determine whether Hong Kong’s regulated stablecoin framework becomes a model for other jurisdictions or remains a focused local initiative.
