Key Highlights
- HKMA issues its first stablecoin licences to HSBC and Anchorpoint Financial Limited, marking the rollout of its regulatory regime.
- Only 2 of 36 applicants were approved, reflecting a cautious approach with a focus on risk management and viable use cases like payments and settlement.
- Licensed issuers must meet strict reserve, compliance, and testing requirements before launching Hong Kong dollar-backed stablecoins.
The Hong Kong Monetary Authority (HKMA) today announced granting its first stablecoin issuer licences, formally launching its regulatory regime for the sector.
According to the official announcement, the licences were awarded to The Hong Kong and Shanghai Banking Corporation Limited (HSBC) and Anchorpoint Financial Limited, marking the transition from policy design to implementation under the Stablecoins Ordinance.
Limited approvals after broad interest
The regulator reviewed 36 applications submitted by the September 2025 deadline, approving only two in the initial round.
Authorities said the selection was based on applicants’ ability to manage financial and operational risks, along with the viability of their proposed use cases. The low approval rate signals a cautious approach, with officials indicating that the total number of licences will remain limited.
Focus on payments and settlement use cases
Both licensees plan to issue Hong Kong dollar-backed stablecoins in the first phase. Their proposals focus on practical financial applications rather than speculative use.
Key areas include cross-border payments, where stablecoins are positioned as a tool to reduce costs and settlement delays, and local transactions aimed at integrating with existing payment infrastructure. Other use cases include settlement for tokenised assets and programmable payments tied to conditions such as supply chain financing.
Strict requirements on reserves and compliance
The licensing framework imposes detailed requirements on issuers, particularly around reserve management and redemption.
Firms must maintain safeguards for fiat-backed reserves, ensure price stability mechanisms, and implement clear redemption processes. They are also required to meet anti-money laundering standards, including transaction monitoring and identity verification for users. Technology risk controls and system resilience are also part of the supervisory expectations.
Gradual rollout before launch
The approved issuers are not yet live. Before launching, they must complete system testing, operational setup, and compliance checks. Authorities expect the first regulated stablecoins to go live later this year, depending on readiness and final approvals.
Once operational, licensees will be subject to continuous oversight, including inspections and performance reviews against their original business plans.
The HKMA has said it will continue engaging with other applicants but has not committed to a timeline for additional approvals. Future licensing decisions will depend on market conditions and early outcomes from the first issuers.
Aligning with global standards
Hong Kong’s framework follows a “same activity, same regulation” approach, aiming to align stablecoin oversight with existing financial rules. The regulator is also participating in international discussions on stablecoin risks, including cross-border operations and supervisory coordination.
The rollout positions Hong Kong among jurisdictions moving toward formal regulation of stablecoins, with an emphasis on controlled adoption rather than rapid expansion.
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