Hong Kong Stablecoin Licenses Shift Stablecoin Issuance to Note-Issuing Banks

Native Web3 institutions must now elevate their AML capabilities to the level of traditional banks to compete for future stablecoin licenses. This shift is the result of the Hong Kong Monetary Authority's issuance of the first two stablecoin licenses to HSBC and Standard Chartered-backed Anchorpoint.

These licenses were granted exclusively to institutions with note-issuing bank backgrounds after 36 applications were reviewed. The HKMA requires licensed institutions to possess robust asset reserve arrangements and and the ability to prudently manage risks. By prioritizing a controllable and auditable framework over decentralized issuance, the regulator has signaled that stablecoin issuance is no longer a simple coin issuance game.

It has become an asset-heavy, compliance-heavy infrastructure that tests underlying liquidity management and on-chain/off-chain compliance penetration capabilities. The sector now requires top-tier AML systems to operate within the regulatory framework.