Ant International plans to launch a stablecoin to seize opportunities in Asian financial centers

Ant Group is actively preparing to launch stablecoin services in major financial centers in Asia. As the overseas subsidiary of Ant Group, this payment processing giant is seeking to explore new growth areas beyond traditional fintech business.

According to reports, this Singapore-based company plans to immediately apply for a stablecoin issuance license after the new "stablecoin regulations" in Hong Kong come into effect in August. As part of its broader blockchain expansion strategy, Ant International also plans to apply for relevant licenses in Singapore and Luxembourg.

This initiative marks Ant Group's official entry into the cryptocurrency space. Last year, the company processed a total global transaction volume exceeding $1 trillion, with about one-third (approximately $333 billion) processed through its blockchain-based Whale platform, highlighting the company's extensive experience in digital asset operational infrastructure.

Ant International's stablecoin program aims to enhance its cross-border payment and fund management services, using blockchain technology to improve the efficiency and transparency of fund transfers. Currently, the Whale platform supports a variety of tokenized assets from global banks and institutions and employs advanced privacy computing technologies, including homomorphic encryption and multi-party verification systems.

The timing is quite favorable, and Ant International is expected to seize the growing demand from institutional investors for stablecoins. As of May this year, the stablecoin market has reached a scale of $243 billion. The company's existing banking partnerships lay a solid foundation for stablecoin operations, having established partnerships with several major global banks. Recently, Ant International also announced a strategic partnership with Deutsche Bank to jointly provide payment solutions and cash management services.

For Ant International, stablecoins represent a natural extension of its fund management business. This business demonstrates tremendous growth potential by handling massive transactions for both the group's internal e-commerce platform and external clients. In the fiscal year 2024, this department's revenue approached $3 billion and has achieved adjusted profitability for two consecutive years.

This business expansion coincides with Ant Group seeking new growth momentum, as its online lending business in China has faced regulatory restrictions since 2020. The international division has established an independent board structure in preparation for a potential spin-off and IPO. Industry estimates suggest that the business's valuation in Hong Kong could range between $8 billion and $24 billion.

Ant International's entry into the stablecoin space aligns with the broader trend of major financial and technology companies embracing digital assets. In 2023, a certain payment giant launched its own stablecoin, marking a significant first move for large financial service companies in this area. At the same time, some asset management firms have also created tokenized money market fund products that function similarly to stablecoins.

Compared to other regions, the regulatory environment in Hong Kong and Singapore provides a clearer framework for stablecoin operations. The upcoming "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.