Jack Ma’s fintech giant is making a decisive move into digital currencies. Ant International, the global arm of Alipay-owner Ant Group, actively pursues stablecoin licences. Specifically, it targets Hong Kong and Singapore first. This strategic push leverages imminent regulatory frameworks. This will position Ant at the forefront of regulated digital finance.
According to Bloomberg reports confirmed by sources, Ant International plans formal applications. Specifically, it seeks stablecoin issuer licences in both Hong Kong and Singapore. Furthermore, Luxembourg is also on its application list. The company will submit its Hong Kong request promptly. Indeed, timing aligns with the city’s Stablecoins Ordinance taking effect this August. Singapore-based Ant International is driving this initiative.
Hong Kong’s Regulatory Timeline
Hong Kong authorities have meticulously built their stablecoin regime since 2023. Crucially, the legislation finally reaches its implementation phase soon. The rules are firmly scheduled to go live in August. This provides a clear pathway for compliant operators like Ant. Meanwhile, Singapore offers another established, crypto-friendly jurisdiction. Therefore, securing permits there is equally vital for Ant’s global ambitions. The Hong Kong Monetary Authority has not commented on specific applications as of now.
Alipay’s Massive Reach
Ant International benefits immensely from its parent’s powerhouse, Alipay. Universally recognised, Alipay dominates mobile payments globally. It boasts over one billion users worldwide. This strength stems primarily from its iron grip on the Chinese market. Alipay commands a formidable 55% share of China’s third-party payments. Furthermore, Ant possesses unparalleled transaction scale and user trust. This foundation underpins its stablecoin aspirations.
Driving Global Transactions
Ant International already processes staggering transaction volumes exceeding $1 trillion annually. Remarkably, its proprietary blockchain platform, Whale, handled one-third of that sum. Whale is the technological engine for cross-border payments and treasury management. Moreover, it supports tokenised assets from global banks and institutions. The platform employs cutting-edge tech like homomorphic encryption. This ensures privacy and enables secure multiparty verification. Additionally, Whale utilises AI to boost fund transfer efficiency and transparency.
Ant International has forged powerful alliances to strengthen this operation. It signed formal agreements with over ten major global banks. Partners include giants like HSBC, BNP Paribas, JPMorgan Chase, and Standard Chartered. Just this week, Ant further announced a strategic partnership with Deutsche Bank. They will jointly develop advanced payment and treasury solutions.
Stablecoins
Stablecoins provide essential stability within volatile cryptocurrency markets. They achieve this by pegging their value to traditional assets. Usually, this means major fiat currencies like the US dollar. Therefore, they act as a crucial counterweight to swings in Bitcoin or Ethereum. Currently, a massive $243 billion worth of stablecoins circulate globally. They are fundamental infrastructure for crypto trading and services. Furthermore, major financial and tech firms increasingly see them as vital entry points into digital assets.
Regulators globally, however, are tightening oversight. Concerns focus on potential crashes and money laundering risks. The US Congress, for instance, actively debates stablecoin legislation. Previous high-profile attempts, like Meta’s (Facebook) Libra/Diem project, collapsed under regulatory pressure. Conversely, PayPal successfully launched its own stablecoin in 2023. Asset managers like BlackRock now also offer tokenised money-market funds. These function similarly to stablecoins for trading collateral.
Future Growth
This licence push forms part of Ant Group’s broader strategic evolution. Following the dramatic halt of its record IPO in 2020, Ant diversified. Regulatory pressure within China impacted its core lending business. Simultaneously, Ant International established an independent board. This clearly signals preparations for a potential spinoff and separate IPO. Bloomberg Intelligence estimates its potential valuation between $8 billion and $24 billion if listed in Hong Kong.
Revenue for Ant International reached nearly $3 billion in 2024. Crucially, it delivered two consecutive years of adjusted profit. Its treasury business, powered by Whale, shows strong growth potential. This stems partly from processing vast volumes for Alibaba’s e-commerce platforms. External client transactions also contribute significantly. By securing stablecoin licences, Ant International aims to solidify its position. Ultimately, it seeks to become a dominant, regulated force in the future of global digital payments and finance.
Written By Fazal Ul Vahab C H
