Chen Maobo Says Stablecoin Licensing Will Take ‘Small Steps, Quick Steps’

Hong Kong Financial Secretary Paul Chan Mo-po has framed the city’s stablecoin licensing strategy as one of “small steps and quick steps,” emphasizing that stablecoins should be treated as payment and settlement tools rather than investment products. The remarks, delivered at Consensus Hong Kong 2026 on February 11, 2026, outlined a deliberately cautious but forward-moving approach to regulating stablecoin issuers.

Chan’s Policy Stance: Gradual Licensing With Clear Expectations

Speaking at the industry conference, Chan said Hong Kong views stablecoins as a practical tool for addressing real-economy pain points, especially in payments and settlements. He stated that stablecoin licensees must demonstrate real-world use cases, a credible and sustainable business model, and strong regulatory compliance capabilities, according to the official government transcript.

Chan said Hong Kong planned to issue only a small number of stablecoin issuer licences in the first batch, which was targeted for March 2026. The phrasing “small steps and quick steps” captured a dual commitment: restraint in how many licences are granted at once, paired with urgency in actually moving the process forward.

First stablecoin issuer licences

That cautious approach played out in practice. On April 10, 2026, the Hong Kong Monetary Authority granted stablecoin issuer licences to just two entities: Anchorpoint Financial Limited and The Hongkong and Shanghai Banking Corporation Limited.

Why ‘Small Steps, Quick Steps’ Signals Deliberate Rollout

The “small steps” half of the equation reflects a screening process designed to filter aggressively. HKMA chief Eddie Yue, speaking on February 2, 2026, said licensing assessments were focusing on use cases, risk management, anti-money laundering measures, and the backing assets of the stablecoins. He confirmed that only a very small number of licences would be granted initially, according to Reuters reporting.

The “quick steps” half signals that Hong Kong does not intend to stall. The regulatory regime for stablecoin issuers came into effect on August 1, 2025, after the HKMA published final supervision and AML guidelines on July 29, 2025. From framework to first licences took roughly eight months, a relatively compressed timeline by global regulatory standards.

That tempo matters in a broader environment where macroeconomic signals and policy speeches are shaping how jurisdictions compete for crypto-related business. Hong Kong’s approach positions it as a jurisdiction that moves on regulation rather than debating indefinitely.

Stablecoins as Payment Infrastructure, Not Speculative Assets

The second core message in Chan’s remarks was a clear distinction: stablecoins are payment tools, not investment products. This framing has direct regulatory consequences. A stablecoin classified as a payment instrument falls under monetary authority oversight focused on reserves, settlement finality, and consumer protection in transactions.

By contrast, treating stablecoins as investment products would pull them into securities-style regulation, with disclosure requirements, investor suitability tests, and potentially different capital rules for issuers. Chan’s positioning avoids that path and keeps the regulatory conversation anchored to payments infrastructure.

The scale of the market Hong Kong is choosing to regulate through this lens is significant. Tether alone carries a market capitalization near $184.5 billion, while the total stablecoin market exceeds $290 billion.

Largest stablecoin market cap

$184.45B

Requiring licensees to demonstrate real-world payment and settlement use cases, rather than speculative trading volume, filters the applicant pool toward firms with operational infrastructure. The two eventual licensees, Anchorpoint Financial and HSBC, both fit that profile as entities with existing payment and banking operations.

What This Means for the Stablecoin Policy Narrative

Chan’s framing reorients the stablecoin conversation away from the volatility and speculation narrative that dominates much of crypto coverage. At a time when the broader crypto market is navigating geopolitical uncertainty and the Fear and Greed Index sits at 12 (Extreme Fear), a policy framework explicitly focused on utility and payments stands in contrast to sentiment-driven market dynamics.

The deliberate choice to grant only two licences in the first batch reinforces that Hong Kong is prioritizing quality of issuers over quantity. The screening criteria, covering use cases, AML controls, risk management, and reserve backing, set a template that other jurisdictions may reference as they develop their own stablecoin frameworks.

For firms considering applying for future batches, the signal is clear: demonstrate payment utility, not trading volume. Applicants will need to show credible settlement use cases and robust compliance infrastructure, the same criteria that institutional players across crypto are increasingly being held to as the regulatory landscape matures.

FAQ About Chen Maobo’s Stablecoin Comments

What did Chen Maobo say about stablecoin licensing?

At Consensus Hong Kong 2026 on February 11, 2026, Financial Secretary Paul Chan Mo-po (Chen Maobo) said Hong Kong’s stablecoin licensing strategy follows a “small steps and quick steps” approach. He stated that only a small number of licences would be issued in the first batch and that applicants must show real-world use cases, sustainable business models, and regulatory compliance.

What does “small steps and quick steps” mean?

“Small steps” refers to issuing a limited number of licences per batch to maintain quality control. “Quick steps” means the process moves forward without unnecessary delay. The regime took effect in August 2025, and the first two licences were granted by April 2026.

Why are stablecoins described as payment rather than investment tools?

Chan positioned stablecoins as tools for addressing real-economy pain points in payments and settlements. This classification keeps them under monetary authority oversight focused on reserves and transaction integrity, rather than securities-style regulation with investor suitability and disclosure requirements.

Which companies received the first stablecoin issuer licences?

The HKMA granted its first stablecoin issuer licences on April 10, 2026 to Anchorpoint Financial Limited and The Hongkong and Shanghai Banking Corporation Limited (HSBC).

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.