The Hong Kong Monetary Authority on April 10 granted its first two stablecoin issuer licenses — to HSBC and Anchorpoint Financial, a joint venture of Standard Chartered, HKT, and Animoca Brands — selecting just 2 from 36 applicants, a 5.6% approval rate. Both licensees plan to issue Hong Kong dol...
"Given the risk inherent in stablecoin activity... the licensing threshold will remain high. Should additional licences be granted in future, the overall number will remain very limited." — Eddie Yue, Chief Executive, Hong Kong Monetary Authority
The Hong Kong Monetary Authority on April 10 granted its first two stablecoin issuer licenses — to HSBC and Anchorpoint Financial, a joint venture of Standard Chartered, HKT, and Animoca Brands — selecting just 2 from 36 applicants, a 5.6% approval rate. Both licensees plan to issue Hong Kong dollar-pegged stablecoins, with HSBC targeting integration into its 3.3-million-user PayMe platform in the second half of 2026 and Anchorpoint planning a phased rollout of its HKDAP token beginning Q2 2026.
The outcome carries a clear signal: Hong Kong's stablecoin market will be bank-led. Every approved entity has banking parentage. Web3-native firms, including those that participated in the HKMA's 2024–2025 sandbox program, were shut out. The licensing decision positions Hong Kong as the first jurisdiction in Asia to operationalize a bank-centric stablecoin regime, diverging from Singapore's broader licensing model and the U.S. GENIUS Act's inclusion of non-bank issuers.
Against the backdrop of a $326 billion global stablecoin market dominated by USDT ($184 billion) and USDC ($79 billion), Hong Kong's entrants face steep network-effect barriers. The question is whether regulatory legitimacy and institutional distribution channels can overcome the entrenched position of offshore dollar-pegged incumbents.
The HKMA received 36 applications by the September 30, 2025 deadline under the Stablecoins Ordinance, which took effect on August 1, 2025. After a review process lasting more than six months — and missing its own self-imposed March 2026 target — the authority approved exactly two.
HKMA Deputy Chief Executive Darryl Chan stated the selection reflected "a holistic comparison of all applications," adding that "it so happened both selected institutions had banking backgrounds." Eddie Yue, the HKMA's chief executive, framed the decision within the regulator's broader posture: "We prefer quality over quantity."
The assessment criteria, according to the HKMA, focused on four pillars: business model feasibility, risk management capabilities, application scenarios, and compliance infrastructure. Both successful applicants had to demonstrate they could meet requirements closer to banking supervision standards than to typical fintech or Web3 compliance frameworks.
HSBC — Asia's largest bank by assets — secured the first license. It plans to issue an HKD-denominated stablecoin integrated into its PayMe consumer payments app and the HSBC HK Mobile Banking App. Initial use cases include peer-to-peer transfers, merchant payments, and subscriptions to tokenized investment products.
Anchorpoint Financial — a joint venture established in February 2025 by Standard Chartered Bank (Hong Kong), Hong Kong Telecommunications (HKT), and Animoca Brands — received the second license. Standard Chartered is the largest shareholder. Its stablecoin, branded HKDAP (HKD At Par), will deploy on a business-to-business-to-consumer (B2B2C) distribution model targeting cross-border payments, tokenized asset settlement, and supply chain financing.
Among the 34 rejected or deferred applicants, several names stand out. OSL Group, a licensed virtual asset platform widely expected to secure a license, was excluded. JD Coinlink Technology and RD InnoTech, both participants in the HKMA's 2024 stablecoin sandbox, remain in regulatory limbo — the sandbox, according to the HKMA, is "a limited-scope testing mechanism" with no guarantee of progression to full licensing. Ant International, which publicly signaled interest in stablecoin issuance for cross-border payments, did not secure approval.
Wu Blockchain characterized the outcome bluntly: "Traditional finance gets the keys first, while Web3 remains outside."
The Stablecoins Ordinance imposes reserve standards that parallel, and in some cases exceed, traditional banking requirements:
These requirements position Hong Kong's stablecoin regime as one of the most restrictive globally. The combination of segregated reserves, currency matching, and identity-verified wallets creates a framework that functions more like a narrow banking license than a payments authorization.
HSBC's license is notable for its built-in distribution channel. PayMe, HSBC's consumer payments app in Hong Kong, serves over 3.3 million users — a figure representing roughly 43% of Hong Kong's 7.7 million population. The stablecoin will also be available through the HSBC HK Mobile Banking App.
Launch is planned for the second half of 2026. Initial functionality includes:
The integration into an existing payments app with a large user base eliminates one of the core adoption challenges for new stablecoins: distribution. HSBC does not need to convince users to download a new wallet or navigate a crypto exchange. The stablecoin sits inside an app many Hong Kong residents already use daily.
The economic implications are material. If even 10% of PayMe's user base — roughly 330,000 users — holds an average of HK$5,000 in stablecoin balances, that produces HK$1.65 billion (approximately $211 million) in stablecoin supply. HSBC would earn yield on the corresponding reserves held in government securities and bank deposits.
Anchorpoint's approach targets institutional and commercial corridors rather than retail consumers. Its HKDAP stablecoin, planned for phased rollout from Q2 2026, will be distributed through "authorised distributors" — financial institutions and platforms that serve end-users.
The five initial use cases, according to Standard Chartered's press release:
The JV structure — Standard Chartered for banking and compliance, HKT for telecommunications distribution, Animoca Brands for blockchain technology — reflects a hybrid model. Animoca's involvement marks the closest any Web3-native firm has come to the licensed stablecoin issuance layer, though its role is technical rather than regulatory.
The HKMA's framework permits stablecoins pegged to any fiat currency, including the Chinese renminbi. This creates a potential pathway for offshore RMB stablecoins — a prospect closely watched by both Beijing and international markets.
However, according to CNBC, Hong Kong is "proceeding with stablecoin plans despite Beijing's reservations." Mainland Chinese authorities have not yet granted the approvals necessary for RMB-referenced stablecoin issuance. The initial licenses are restricted to HKD-denominated tokens.
The implications are significant. An RMB stablecoin issued under HKMA supervision could serve as a programmable settlement layer for China's $3.6 trillion annual goods trade. It could also offer Chinese firms access to DeFi rails without violating mainland crypto prohibitions — provided Beijing eventually consents.
For now, the RMB stablecoin remains a theoretical possibility within the regulatory architecture rather than an imminent product.
Hong Kong's licensing regime enters a competitive field. Three Asian jurisdictions have now operationalized stablecoin frameworks:
| Jurisdiction | Regulator | Framework | Issuer Eligibility | Currency Scope | |---|---|---|---|---| | Japan | FSA | Amended PSA (June 2023) | Banks, trust companies, money transfer agents | JPY and foreign currencies | | Singapore | MAS | Payment Services Act (2024 amendments) | Licensed entities (banks and non-banks) | SGD and G10 currencies | | Hong Kong | HKMA | Stablecoins Ordinance (Aug 2025) | Licensed issuers (de facto banking standard) | Any fiat currency |
Key differences: Singapore permits non-bank issuers and caps coverage at SGD and G10 currencies. Japan restricts issuance to banks, trust companies, and registered transfer agents. Hong Kong places no currency restriction but applies the highest de facto barrier to entry — out of 36 applicants, both winners had banking backgrounds.
The European Union's MiCA framework, effective since June 2024, permits non-bank e-money institutions to issue stablecoins. The U.S. GENIUS Act, currently stalled amid disputes over yield provisions, would similarly permit non-bank issuers under Federal Reserve supervision.
Hong Kong's approach is the most restrictive of the major jurisdictions in terms of issuer eligibility, while being the most permissive in terms of reference currency scope.
The global stablecoin market reached approximately $326 billion in total supply as of April 2026. USDT accounts for $184 billion (56%), USDC for $79 billion (24%). Together they hold roughly 80% of the market.
Hong Kong's new HKD stablecoins enter a market with formidable incumbents and entrenched network effects. Several structural barriers exist:
The counter-argument centers on regulatory legitimacy. Institutional users, corporates, and regulated financial entities that cannot hold USDT or USDC for compliance reasons now have a supervised alternative. The question is whether this segment is large enough to generate meaningful stablecoin supply.
Hong Kong's first stablecoin licenses mark a definitive regulatory statement: stablecoin issuance, in the HKMA's view, is a banking function. The 5.6% approval rate, the banking backgrounds of both licensees, and the narrow-banking-grade reserve requirements leave little ambiguity about the regulator's intent.
The economic value generated by these stablecoins — yield on reserves, transaction fees, settlement revenue — will accrue to traditional financial institutions operating under heavy supervision. This model prioritizes stability over permissionless access, and institutional credibility over open participation.
Whether Hong Kong's regulated HKD stablecoins can capture meaningful market share against entrenched dollar-pegged incumbents remains uncertain. The distribution advantage — HSBC's PayMe user base, Standard Chartered's corporate network — is real but untested against the liquidity and ubiquity of USDT and USDC. The RMB stablecoin option, if eventually activated, would substantially alter the calculus.
For now, Hong Kong has answered one question clearly: who issues stablecoins. The harder question — who uses them, and why — remains open.