The Hong Kong Monetary Authority (HKMA) is facing industry calls to loosen restrictions on stablecoin issuance after granting its first two licenses exclusively to traditional banks, as reported by the South China Morning Post.
HSBC and Anchorpoint, a joint venture led by Standard Chartered, received the initial HKMA stablecoin licenses.
Market participants noted that the approvals fell short of expectations and highlighted the regulator’s cautious approach to digital assets.
Everbright Securities International strategist Kenny Ng Lai-yin said the market had expected the authority to issue at least three licences to issuers from a broader range of backgrounds.
Hong Kong is among the first jurisdictions to introduce a comprehensive regulatory framework for stablecoin issuance. The city’s Stablecoin Ordinance came into effect in August 2025 to reinforce its ambitions as a global digital asset hub.
Unlike volatile cryptocurrencies, stablecoins are typically pegged to fiat currencies to combine the efficiency of digital assets with the stability of traditional money.
S&P Global Ratings indicated in a research note that the decision signals a conservative regulatory approach that places banks at the forefront of market development.
Broadening market access
The approvals arrived later than expected following a review of 36 applications.
HKMA Deputy Chief Executive Darryl Chan Wai-man attributed the timeline to a rigorous review process ensuring applicants met requirements for risk management, customer identity checks, and operational resilience.
Industry participants are now advocating for non-bank issuers to be included in future rounds.
MindWorks venture capital founder and Chief Executive David Chang said licensing technology start-ups alongside banks would be a welcome step for market development.
RD Technologies, a fintech firm that participated in the HKMA stablecoin issuer sandbox launched in 2024, stated it will maintain communication with regulatory bodies and aims to progress in the next phase of assessments.
HSBC plans to launch a Hong Kong dollar-backed stablecoin in the second half of 2026.
The bank will integrate the digital currency into its PayMe and mobile banking platforms for peer-to-peer transfers and merchant payments.
Anchorpoint plans to roll out its HKD At Par stablecoin in the second quarter for institutional investors.
Featured image credit: Edited by Fintech News Hong Kong, based on image by lifeforstock via Freepik
