I just noticed an interesting development in the Hong Kong stablecoin space. The HKMA has issued the first two licenses for stablecoin issuers last week, and they were awarded to HSBC and Anchorpoint Financial, a joint venture of Standard Chartered with Animoca Brands and Hong Kong Telecommunications.

The selection came from 36 applicants under the Stablecoins Ordinance that became effective in August 2025. Interestingly, both winners have deep experience in traditional banking and risk management, so the regulator is confident in their capability to operate a HKD-backed stablecoin.

I looked into the details of the framework and it’s quite strict. Stablecoins must be fully backed by high-quality liquid assets such as cash, bank deposits, or short-term government securities. They require a minimum paid-up capital of HK$25 million, plus liquid capital equivalent to 12 months of operating expenses. There’s also a daily redemption requirement and interest-bearing stablecoin offerings are prohibited.

The regulatory scope is comprehensive — it covers restrictions on algorithmic stablecoins, anti-money laundering controls, and reserve quality standards. Paul Chan mentioned during the budget discussion that the first batch is limited pending improvements in risk management.

Now, why is this important: HSBC will launch their HKD stablecoin on the PayMe app and HSBC HK Mobile Banking in the second half of 2026, providing direct retail access. This is significant because the broader stablecoin market has already reached $311 billion, but mostly in USD-denominated assets. Hong Kong sees an opportunity for an HKD-based stablecoin to serve regional settlement needs.

It’s also timely and interesting because mainland China is exploring a renminbi-backed stablecoin through Hong Kong, with state-owned companies like China National Petroleum Corporation studying stablecoins for cross-border payments. It seems to be positioning Hong Kong itself as a fintech hub in the region.