The Hong Kong Monetary Authority (HKMA) has granted its first stablecoin issuer licences to HSBC and a consortium led by Standard Chartered, marking a pivotal advance in the city’s ambition to become a global hub for digital assets. The approvals come eight months after Hong Kong’s comprehensive Stablecoin Ordinance took effect, with the regulator reviewing 36 applications but initially approving only a select group that aligns with its goal of bridging traditional and digital finance.
HSBC to Launch HKD-Pegged Stablecoin in H2 2026
HSBC announced it will launch a Hong Kong dollar-pegged stablecoin in the second half of 2026, integrating the token into its Payme wallet and mobile banking platform. This move creates a direct link between everyday banking services and digital currencies, allowing users to transact seamlessly. The second licence was awarded to Anchorpoint Financial, a consortium comprising Standard Chartered, Animoca Brands, and Hong Kong Telecom. Both issuers can develop stablecoins tied to the Hong Kong dollar, with future potential for cross-border payment use cases.
Strict Regulatory Framework: Full Backing, No Yields
“The two applicants have experience in traditional finance and risk management, which fits the mission of stablecoins that aim to bridge traditional finance and digital finance,” said HKMA Deputy Chief Executive Darryl Chan. Under the new regime, stablecoin issuers must maintain full backing with high-quality liquid assets such as cash, bank deposits, or short-term government securities. A minimum paid-up capital of $3.19 million (HK$25 million) is required, and reserve assets must be legally segregated from the issuer’s balance sheet. The rules explicitly prohibit offering interest or yields on stablecoin holdings, and holders must be able to redeem tokens for fiat within one business day unless exceptional circumstances are approved by the regulator.
Hong Kong’s Distinct Path in Digital Finance
This licensing milestone highlights Hong Kong’s distinctive approach under the “one country, two systems” principle. While mainland China maintains a ban on most crypto activities, Hong Kong is positioning itself as a regulated gateway for digital finance, aiming to attract global players and provide new channels for cross-border transactions. The stablecoin regime is part of a broader strategy that includes ongoing reviews of virtual asset advisory and management frameworks by the Securities and Futures Commission (SFC) and the Financial Services and the Treasury Bureau (FSTB). With clear rules and institutional backing, Hong Kong is rapidly building the infrastructure to compete with other global digital asset hubs.