Norman Chan: Steadily Developing Hong Kong's Compliant Stablecoin Ecosystem

marsbitPublished on 2026-04-12Last updated on 2026-04-12

Abstract

On April 10, the Hong Kong Monetary Authority (HKMA) issued stablecoin licenses to Point (a joint venture among Standard Chartered Bank, Hong Kong Telecom, and an unnamed group) and HSBC under the “Stablecoin Ordinance.” In an official article, HKMA Chief Executive Eddie Yue highlighted that this marks a new phase in Hong Kong’s regulation of stablecoins. Both licensees plan to initially issue Hong Kong dollar-denominated stablecoins, focusing on four key areas: cross-border and local payments, tokenized asset trading, and innovative applications. Given their banking experience and prior involvement in central bank digital currency (CBDC) trials, the two institutions are well-positioned to explore synergies in “next-generation payment systems.” The HKMA emphasized that licensing standards will remain high, with a limited number of licenses to be issued. Ongoing compliance will be ensured through on-site examinations and other supervisory measures. The move aims to align with global regulatory trends and leverage compliant stablecoins to address real economic needs, strengthening Hong Kong’s foundation as a digital finance hub.

On April 10, the Hong Kong Monetary Authority announced that, in accordance with the "Stablecoin Ordinance," it has officially issued stablecoin licenses to Anchor (a joint venture of Standard Chartered Bank, Hong Kong Telecom, and the Ant Group) and HSBC Bank.Norman Chan, Chief Executive of the Hong Kong Monetary Authority, published an article titled "Steadily Developing Hong Kong's Compliant Stablecoin Ecosystem" in the official "Viewpoint" column, in which he pointed out that,this licensing marks a new phase in Hong Kong's stablecoin regulation. Both licensees plan to issue Hong Kong dollar stablecoins in the first phase, focusing on four major scenarios: cross-border and local payments, tokenized asset trading, and innovative applications. As both institutions have banking backgrounds and have participated in CBDC experiments, they are well-positioned to explore the collaborative effects of "future payments." The HKMA emphasized that the licensing threshold will remain high, and the number of licenses will be kept limited in the future. Subsequent measures, such as on-site reviews, will be implemented to ensure licensees operate in compliance. This move aims to leverage compliant stablecoins to address real economic pain points in line with international regulatory trends, laying a solid foundation for Hong Kong as a digital financial hub.

Author: Norman Chan

Source: Hong Kong Monetary Authority

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Related Questions

QWhat is the significance of the stablecoin licenses issued by the Hong Kong Monetary Authority (HKMA) on April 10th?

AThe issuance of licenses to Point (a joint venture of Standard Chartered Bank, HKT, and Ant Group) and HSBC marks a new phase in Hong Kong's stablecoin regulation, signifying the formal start of a regulated stablecoin ecosystem in the region.

QWhich two institutions were granted stablecoin licenses by the HKMA?

AThe two institutions granted stablecoin licenses are Point (a joint venture between Standard Chartered Bank, Hong Kong Telecom, and Ant Group) and HSBC.

QWhat are the four key application scenarios that the licensed institutions plan to focus on in the first phase of issuing HKD stablecoins?

AThe four key application scenarios are cross-border and local payments, tokenized asset trading, and innovative applications.

QWhy does the HKMA believe the banking background of the licensed entities is advantageous?

ATheir banking background and prior participation in Central Bank Digital Currency (CBDC) experiments are advantageous as it facilitates the exploration of synergistic effects for 'future payments' and integration with the traditional financial system.

QWhat is the HKMA's approach to the number of stablecoin licenses it will issue and how will it ensure compliance?

AThe HKMA will maintain a high licensing threshold, intending to keep the number of licenses limited. It will ensure compliance through measures such as on-site examinations of the licensed entities.

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