Standard Chartered Becomes First Distributor of HKDAP

Standard Chartered Bank Hong Kong on Aug. 24 became the first conventional bank to distribute HKDAP, Hong Kong's regulated local-currency stablecoin. The move opens institutional and professional investor access to the token during its controlled beta. Anchorpoint Financial, which issues HKDAP under HKMA licence FRS01, reported 522,000 HKDAP in circulation as of Aug. 19. Standard Chartered is an anchor shareholder of Anchorpoint and established the issuer with HKT and Animoca Brands.

What the new distribution channel means

Standard Chartered joining the HKDAP distribution network marks a key step in bringing regulated stablecoins into mainstream banking channels. Alongside crypto exchanges and licensed dealers such as HashKey Exchange and OSL, the bank will let eligible corporate and institutional clients convert Hong Kong dollars into HKDAP and redeem the tokens back to fiat through an authorized channel. For now, access remains restricted to institutions, corporate customers and professional investors while Anchorpoint runs a phased institutional rollout on Ethereum.

Regulatory context and licensing

The Hong Kong Monetary Authority awarded two stablecoin issuer licences on April 10: one to Anchorpoint and one to HSBC. That selective licensing regime requires issuers to hold adequate, segregated reserves and to process redemptions at par, under Hong Kong’s Stablecoins Ordinance. Anchorpoint’s business-to-business-to-consumer distribution model relies on regulated partners—banks, exchanges and other authorized entities—to provide onramps, liquidity and fiat conversion.

How HKDAP works

HKDAP, shorthand for HKD At Par, is issued by Anchorpoint Financial and currently operates on the Ethereum blockchain. The token is intended to trade one-to-one with the Hong Kong dollar and to be redeemable at par through authorized distributors. The phased beta reflects an emphasis on compliance and reserve transparency rather than rapid retail adoption; Anchorpoint reported 522,000 tokens circulating during its limited rollout on Aug. 19.

Authorized distributors and market access

Standard Chartered joins HashKey Exchange and OSL as authorized distributors. HashKey and OSL began offering institutional beta access earlier in August, and have completed initial mint-and-redeem transactions for approved clients. Users are advised to verify contract addresses and only access HKDAP via Anchorpoint’s authorized channels, following an HKMA advisory about unaffiliated tokens using similar tickers or names.

Security review and contract scrutiny

An independent analysis of HKDAP’s Ethereum smart contract by security researcher Yajin Zhou questioned aspects of its custom approval, upgrade and access-control architecture. The review suggested some compliance-related controls might not behave as expected, though it did not identify any theft or loss. The review’s findings are not an HKMA enforcement action, and Anchorpoint had not published a detailed public response at the time of reporting. Industry watchers will expect clearer reserve disclosures and any technical fixes ahead of broader distribution.

Planned use cases: tokenized funds and faster settlement

Standard Chartered said it plans to add tokenized money market fund subscription and settlement services in the fourth quarter of 2026, working with both international and Hong Kong asset managers. Using HKDAP as the cash leg of tokenized fund transactions enables payment and fund unit transfers on the same blockchain rails, which can materially reduce settlement latency. The bank has piloted related tokenization work—supporting China Asset Management Hong Kong’s tokenized money market fund and taking part in Project Ensemble tests with the HKMA—so the new service builds on existing tokenization infrastructure.

Other pilot applications

Beyond fund settlement, Standard Chartered will test HKDAP for intra-group transfers and explore use cases such as cross-border payments, corporate treasury management and transfers outside traditional banking hours. These initiatives remain in pilot stages, and the bank has not announced participating asset-manager partners or projected volumes for the new services.

What to watch next

Key milestones to monitor include confirmation of named asset-manager partners and the completion of real tokenized fund subscriptions and settlement runs using HKDAP. Anchorpoint has indicated a potential wider rollout, including retail access by the end of 2026, contingent on regulatory approval and market conditions.

Market participants should also watch for:

• Updated reserve reporting and segregation proofs from licensed issuers, which will be crucial for trust in regulated stablecoins.
• Any public response or fixes from Anchorpoint addressing the contract review.
• Further HKMA guidance or additional stablecoin licence awards as the regulator continues a selective approach.

Conclusion

Standard Chartered’s entry as the first traditional bank distributor of HKDAP advances the integration of regulated stablecoins into mainstream financial services. By offering institutional onramps and planning tokenized fund settlement services, the bank is positioning HKDAP as a potential building block for faster, blockchain-native cash settlement in Hong Kong’s financial ecosystem. However, broader adoption will depend on demonstrated operational security, transparent reserves and the pace at which licensed partners scale their distribution and settlement use cases.