The Hong Kong Monetary Authority (HKMA) on Friday announced it granted stablecoin issuer licences to HSBC and Anchorpoint Financial, a joint venture backed by Standard Chartered.

The move came eight months after the city's Stablecoin Ordinance took effect last year.

A stablecoin is a type of cryptocurrency that maintains a steady value by being pegged to a reference asset, typically fiat currencies such as the US dollar or commodities such as gold.

The HKMA said it granted the the green light to the two entities after working "relentlessly" to "thoroughly" assess a total of 36 groups that were among the first batch to have submitted applications by last year's September 30 deadline.

In a statement, HKMA chief executive Eddie Yue noted that the move is a "milestone" for the SAR, as it aims to transform into a digital asset hub.

He also said the regulatory regime offers an "orderly environment" for relevant issuers to apply innovative technologies while managing risks and protecting users.

"We look forward to the issuers launching businesses according to their plans, exploring growth opportunities while properly managing risks," Yue said.

"We hope their promotion of regulated stablecoins will address pain points in financial and economic activities, create value for both individuals and businesses, and support the healthy development of digital assets in Hong Kong," he added.

The authority noted that the two licensed companies aim to issue Hong Kong dollar-referenced stablecoins in the second half of the year.

The HKMA said it would continue to engage other applicants or companies that want to issue stablecoins, though it stressed that it sets a high bar.

"Regarding the granting of additional licences and related timing, we adopt an open yet prudent stance, with no definitive inclination at this stage," it said in the statement.

The HKMA also reminded the public to remain vigilant over potential frauds or scams related to the cryptocurrency.

Founded in August, Anchorpoint Financial is a joint venture formed by lender Standard Chartered, digital asset firm Animoca Brands and Hong Kong Telecommunications.


Edited by Aaron Tam