(April 10): Hong Kong has granted its inaugural stablecoin issuer licences to HSBC Holdings Plc and a joint venture of Standard Chartered Plc, allowing the two lenders to be the first companies to issue cryptocurrencies pegged to the local currency.
The two banks, which also issue Hong Kong dollar notes, won the mandate from a pool of 36 applicants, the Hong Kong Monetary Authority announced on Friday. The Standard Chartered venture, called Anchorpoint Financial Ltd, includes Hong Kong Telecommunications Ltd and Animoca Brands Ltd.
The licencees are expected to issue stablecoins in mid- to second-half of 2026 upon completion of preparatory work, according to the authority.
The new licences add to a digital asset regulatory regime that has been in the works since the Hong Kong government pledged in 2022 to turn the city into a global crypto hub. The Securities and Futures Commission began licensing cryptocurrency exchanges in 2023. Rules for licensing fiat-referenced stablecoins, overseen by the HKMA, took effect last year.
“Regarding the granting of additional licences and related timing, we adopt an open yet prudent stance, with no definitive inclination at this stage,” HKMA chief executive Eddie Yue said in a statement. “Should additional licences be granted in future, the overall number will remain very limited.”
Under the city’s framework, issuers must maintain reserves equal to 100% of the value of their stablecoins in circulation. Issuers of any stablecoins within Hong Kong or Hong Kong dollar-backed stablecoins anywhere require a license from the HKMA.
See also: Why has Singapore emerged as the stablecoin centre?
Efforts to regulate the issuance of stablecoins have been increasing around the world. Last summer, the US passed a law regulating the assets, adding new urgency elsewhere to establish rules governing the cryptocurrencies that financial authorities have warned could carry systemic risks.
Hong Kong’s position stands in contrast to the more stringent rules in mainland China. In February, the People’s Bank of China issued a statement barring the issuance of unauthorised yuan-based stablecoins. PBOC governor Pan Gongsheng has both issued warnings about the risks of stablecoins and said they could revolutionise international finance.
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