The Hong Kong Monetary Authority granted its first two stablecoin issuer licenses on April 10, 2026, selecting HSBC and Anchorpoint Financial from a pool of 36 applicants. Anchorpoint is a joint venture between Standard Chartered, Animoca Brands, and Hong Kong Telecommunications. The approvals come under the Stablecoins Ordinance, which took effect on August 1, 2025, and arrive roughly two weeks past the regulator's original March target.
The Two Banks That Already Print Hong Kong's Cash
The HKMA's choice is not random. HSBC and Standard Chartered are two of only three commercial banks authorized to print Hong Kong dollar banknotes, a system dating back to 1846. The third note-issuing bank, Bank of China (Hong Kong), did not receive a license in this batch.
That history matters because the reserve structure for licensed stablecoins mirrors the existing currency board arrangement. Banks deposit U.S. dollars with the government's Exchange Fund at a fixed rate of HK$7.80 per dollar and receive Certificates of Indebtedness that back issuance. The stablecoin regime applies a similar logic: reserves must equal at least 100% of outstanding stablecoin value, held in high-quality liquid assets segregated from company funds.
HSBC plans to roll out its Hong Kong dollar stablecoin through its PayMe mobile payment app and core banking application in the second half of 2026. The initial phase will cover person-to-person transfers and merchant payments.
Anchorpoint Financial is moving faster. The Standard Chartered-led venture plans to launch HKD At Par (HKDAP) from the second quarter of 2026, starting with institutional clients before expanding to retail.
What the Rules Require
The licensing framework imposes identity requirements that go well beyond what most existing stablecoins demand. Licensed stablecoins can only be transferred to wallets whose owners have been identity-verified. For transfers above HK$8,000 (roughly $1,025), the travel rule applies, which Anchorpoint is expected to embed directly into smart contracts through whitelisted wallet systems.
The HKMA retains authority to investigate violations and enforce compliance through fines, operational suspensions, or license revocation. Financial Secretary Paul Chan said in his February budget address that only "a small number" of licenses would be issued initially, with the regulator prioritizing risk management, reserve quality, and anti-money-laundering controls.
Thirty-six entities applied. Two got through. The approval rate: 5.6%.
Why CZ Noticed
Binance co-founder Changpeng Zhao flagged the approval on X within minutes of the announcement, noting the significance of traditional banking giants entering the stablecoin issuance space. The post drew over 20,000 views in under an hour.
The interest from exchange founders is straightforward. A bank-issued, regulator-approved stablecoin pegged to the Hong Kong dollar creates a new on-ramp for institutional capital in Asia's second-largest financial center. For crypto card users in Hong Kong, HKD-denominated stablecoins could reduce the friction of funding cards that currently require conversion from USDT or USDC into local currency.
Hong Kong's approach also signals a strategic shift. By licensing note-issuing banks first, the HKMA appears to be deprioritizing retail central bank digital currency development in favor of regulated stablecoins for institutional trade settlement. This bank-led model contrasts with China's government-issued digital yuan and Europe's still-gestating digital euro.
Where This Fits in the Stablecoin Race
Hong Kong is now Asia's first major jurisdiction with a comprehensive stablecoin licensing framework. The timeline: sandbox applications opened in March 2024, the Stablecoins Ordinance passed in mid-2025, and the first licenses arrived in April 2026. A four-year process from concept to approval.
The competitive context matters. The U.S. is still debating the Clarity Act and stablecoin legislation. Switzerland launched a franc stablecoin sandbox in March 2026 with six banks, including UBS. Singapore has its own MAS-regulated framework but has not yet licensed a SGD stablecoin issuer at this scale.
Ethereum's stablecoin supply hit $180 billion this week. USDT and USDC dominate that figure. Whether bank-issued, jurisdiction-specific stablecoins like HKDAP can carve meaningful market share remains the open question. The identity-verification requirement alone will limit adoption among users accustomed to pseudonymous transfers.
As of April 10, 2026, BTC trades at $72,763 (+0.9% in 24 hours), ETH at $2,232 (+0.9%), and the Fear & Greed index sits at 48 (Neutral).
Overview
The HKMA issued Hong Kong's first two stablecoin licenses on April 10, 2026, to HSBC and Anchorpoint Financial (a Standard Chartered, Animoca Brands, and HK Telecom venture). Both licensees are connected to banks that already print Hong Kong's physical banknotes. The reserve model requires 100% backing in high-quality liquid assets, and all transfers are restricted to identity-verified wallets. HSBC will distribute through its PayMe app in H2 2026, while Anchorpoint plans to launch its HKDAP token for institutional clients in Q2. Out of 36 applicants, only these two were approved.
