On April 10, 2026, the Hong Kong Monetary Authority (HKMA) granted its first two stablecoin issuer licenses to HSBC and a consortium led by Standard Chartered, which includes Animoca Brands. This marks a significant development under the Stablecoins Ordinance that came into effect in August 2025.
HKMA Chief Executive Eddie Yue expressed optimism about the potential of these issuers to explore growth opportunities while managing associated risks. He stated, “We hope their promotion of regulated stablecoins will 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 HKMA evaluated 36 applications for stablecoin licenses but indicated that only a limited number would be approved. Financial Secretary Paul Chan had previously noted in his February budget address that the regulator would prioritize factors such as risk management, reserve quality, and anti-money-laundering measures.
The decision to initially license banks that issue currency appears strategic. HSBC and Standard Chartered are among only three commercial banks permitted to print Hong Kong dollar banknotes, a practice that has historical roots dating back to 1846. This system allows these banks to issue currency backed by U.S. dollar deposits at a fixed exchange rate.
In a blog post from December 2023, Yue drew a parallel between the historical issuance of banknotes and the current function of stablecoins, describing them as a blockchain-based equivalent of “private money” that can serve as a medium of exchange.
The newly issued licenses come with stringent Know Your Customer (KYC) requirements. Under the HKMA’s anti-money laundering guidelines, stablecoins can only be transferred to wallets that have undergone identity verification. Additionally, the travel rule applies to transactions exceeding HK$8,000 (approximately $1,000), indicating that HKD stablecoins will likely incorporate compliance checks into their smart contracts.
This model contrasts with the more freely transferable nature of existing tokens like USDT or USDC. The HKMA’s approach suggests a shift in focus away from developing a central bank digital currency (CBDC) for retail use, especially after a pilot program indicated weak demand for such a currency.
During Hong Kong Fintech Week, the conversation shifted from CBDCs to stablecoins, with Standard Chartered CEO Bill Winters suggesting that the city’s advancements in stablecoins and tokenized deposits could pave the way for a new era in digital trade settlement.
As the stablecoin market, valued at approximately $310 billion, remains dominated by USD-pegged tokens, Hong Kong’s initiative aims to establish a regulated, bank-issued HKD stablecoin that could play a role in regional trade. However, the challenge remains whether a non-dollar stablecoin can generate the necessary network effects to compete effectively.
Hong Kong has issued its first stablecoin licenses to HSBC and a Standard Chartered-led consortium, marking a significant step in the territory's digital asset landscape. With stringent regulatory measures in place, the move aims to foster a regulated environment for stablecoins while addressing financial and economic challenges.