Standard Chartered Bank Hong Kong has become the first traditional bank to distribute HKDAP, a regulated Hong Kong dollar stablecoin, marking another step in the city’s push to integrate blockchain technology with mainstream financial services.
The bank began offering HKDAP access to eligible institutional clients and partners on Aug. 24. The stablecoin is issued by Anchorpoint Financial under a licence granted by the Hong Kong Monetary Authority (HKMA). Anchorpoint was established by Standard Chartered, HKT and Animoca Brands, with Standard Chartered serving as its largest shareholder.
Hong Kong issued its first two stablecoin licences in April, approving Anchorpoint and HSBC. While both received regulatory approval, Standard Chartered’s announcement makes it the first conventional bank publicly involved in distributing a live Hong Kong dollar stablecoin.
Standard Chartered Adds Banking Distribution to HKDAP
Standard Chartered joins HashKey Exchange and OSL as authorized distributors of HKDAP. The two crypto platforms began providing limited beta access to approved users earlier in August.
During the current rollout, access is restricted to institutions, corporate clients and professional investors. Eligible users can convert Hong Kong dollars into HKDAP and later redeem the tokens for fiat currency through authorized channels.
HKDAP operates on the Ethereum blockchain and is designed to maintain a 1:1 value with the Hong Kong dollar. Under Hong Kong’s stablecoin regulations, licensed issuers are required to maintain adequate reserve assets, keep those reserves segregated and support redemptions at face value.
Anchorpoint reported approximately 522,000 HKDAP tokens in circulation as of Aug. 19, reflecting the stablecoin’s early-stage, institution-focused rollout rather than mass-market adoption.
Tokenized Funds Could Become a Major Use Case
Standard Chartered plans to expand HKDAP into the tokenized-asset market, with the bank targeting the launch of subscription and settlement services for tokenized money market funds during Q4.
The concept is straightforward: a stablecoin can provide the cash component of a tokenized investment transaction while the fund units are recorded on the same blockchain infrastructure. This could reduce settlement delays between the movement of assets and the corresponding payment.
The bank intends to work with asset managers in Hong Kong and internationally, although it has not yet identified participating firms or provided projected transaction volumes.
The initiative builds on Standard Chartered’s broader work in asset tokenization. The bank already supports infrastructure for a tokenized money market fund operated by China Asset Management Hong Kong and has participated in experiments involving tokenized deposits through the HKMA’s Project Ensemble.
Other potential applications for HKDAP include intra-group transfers, cross-border payments, corporate treasury operations and transactions outside traditional banking hours.
Most of these applications remain in the testing or planning phase, with the tokenized fund service currently carrying the clearest Q4 target.
Hong Kong’s Stablecoin Framework Takes Shape
The HKMA granted its first stablecoin issuer licences to Anchorpoint and HSBC on April 10 after receiving 36 applications. The regulator has indicated that future approvals are likely to remain selective.
Anchorpoint has adopted a partnership-driven distribution strategy, working with banks, exchanges and other regulated businesses instead of directly serving every end user.
HashKey and OSL are already part of that distribution network, providing institutional access, liquidity and conversion services during the initial rollout.
The HKMA has also warned users about unauthorized tokens using the HKDAP or HSBC names. Investors are therefore expected to verify official contract addresses and use authorized distribution channels when accessing regulated stablecoins.
Independent Review Raises Questions About HKDAP’s Smart Contract
HKDAP has also attracted scrutiny from the blockchain security community.
Security researcher Yajin Zhou published an independent assessment of the stablecoin’s Ethereum smart contract, raising questions about aspects of its approval mechanism, upgrade structure and access controls.
The review suggested that some compliance-related controls may not function as expected. However, the findings do not represent an HKMA enforcement action or evidence of a confirmed exploit, and the analysis did not identify theft or loss of funds.
Anchorpoint had not issued a detailed public response to the findings at the time of reporting.
What Comes Next for HKDAP?
The next major indicators for HKDAP will be its actual adoption and integration into financial markets.
Key developments to watch include:
- Partnerships with major asset managers
- Real-world settlement of tokenized funds
- Growth in HKDAP circulation
- Further reserve disclosures
- Expansion into cross-border payments and treasury operations
- Potential broader access for retail users
Anchorpoint has indicated that wider availability, potentially including retail participation, could emerge by the end of 2026, depending on regulatory requirements and market conditions.
Standard Chartered’s involvement gives HKDAP an important connection to traditional finance. If the stablecoin can move beyond controlled institutional pilots into meaningful payments, settlement and treasury applications, it could become an important component of Hong Kong’s emerging digital-asset infrastructure.
