Ant International plans to launch stablecoin business in Hong Kong

Ant International, as the overseas subsidiary of Ant Group, is working to develop stablecoin services in major financial centers in Asia. This payment processing giant is seeking to explore new growth areas beyond traditional fintech businesses.

According to reports, this Singapore-based company plans to immediately apply for a stablecoin issuance license after the stablecoin regulations in Hong Kong take effect in August. As part of its broader blockchain expansion strategy, the company also intends to apply for relevant licenses in other regions.

This move marks Ant International's official entry into the cryptocurrency space. Last year, the company's global transaction processing volume exceeded $1 trillion, with about one-third completed through its blockchain-based Whale platform, demonstrating the company's rich experience in digital asset operational infrastructure.

Ant International's stablecoin plan aims to enhance its cross-border payment and fund management service capabilities, leveraging blockchain technology to improve the efficiency and transparency of fund transfers. Currently, the Whale platform supports various tokenized assets from global banks and institutions, utilizing advanced privacy computing technologies, including homomorphic encryption and multi-party verification systems.

The current timing is favorable for Ant International to seize the growing demand from institutional investors for stablecoins. As of May this year, the global stablecoin market size has reached $243 billion. The company's partnerships with several major global banks have laid a solid foundation for its stablecoin business. Recently, Ant International also announced a strategic partnership with a German bank to jointly provide payment solutions and fund management services.

For Ant International, stablecoins are a natural extension of its capital management business. This business demonstrates tremendous growth potential through the large volume of transactions processed for affiliated e-commerce platforms and external clients. The department's revenue in 2024 is close to $3 billion, and it has achieved adjusted profitability for two consecutive years.

This business expansion comes at a time when Ant Group is seeking new growth drivers, as its online lending business in China has faced regulatory constraints in recent years. Ant International has established an independent board structure to prepare for a potential spin-off and listing. It is estimated that this business could be valued between $8 billion and $24 billion in Hong Kong.

Ant International's foray into the stablecoin sector comes at a time when large financial and technology companies are embracing the trend of digital assets. In 2023, a well-known payment company launched its own stablecoin, marking the first significant attempt by a large financial services company in this field. Meanwhile, some asset management companies have also created tokenized money market fund products similar to stablecoins.

Compared to other regions, the regulatory environment in Hong Kong and Singapore provides a clearer framework for stablecoin operations. The forthcoming "Stablecoin Regulation" in Hong Kong and Singapore's advanced digital asset regulations offer institutional-level compliance pathways for companies looking to operate legally in this field.