Reitar Logtech to seek Hong Kong stablecoin issuer license

Reitar Logtech to seek Hong Kong stablecoin issuer license

Title: Reitar Logtech to Seek Hong Kong Stablecoin Issuer License

Reitar Logtech, a subsidiary of the Chinese e-commerce giant Alibaba, has announced its intention to apply for a stablecoin issuer license in Hong Kong. This move comes after the city's legislature passed a stablecoin bill that establishes a licensing regime for fiat-referenced stablecoin issuers, set to take effect on August 1, 2025 [1].

Ant Group, which operates China's ubiquitous mobile payments app Alipay, is seeking regulatory approval to issue fiat-referenced stablecoins (FRS) in Hong Kong. The company aims to leverage stablecoins for its cross-border payment operations and treasury management services [2]. This expansion is part of Ant Group's broader strategy to integrate blockchain technology into its financial services offerings.

The application for the stablecoin license is expected to be submitted after the Stablecoins Ordinance becomes effective on August 1. This new regulatory framework requires stablecoin issuers to obtain a license from the Hong Kong Cash Authority (HKMA) to issue stablecoins. Failure to comply may result in fines of up to $5 million HKD ($640,000 USD) [3].

Ant Group's overseas arm, Ant International, will handle the application process. The company has previously shown interest in stablecoins, with plans to seek similar licenses in Singapore and Luxembourg as part of its global digital finance expansion strategy [4].

The news follows the approval of the Stablecoin Decree Law, which is scheduled to start with full impact on August 1. This regulatory move underscores the increasing confidence among traditional fintech players in the mature global organizational scene of stablecoins, which are increasingly used for payments and the settlement of digital assets [2].

Ant Group's move into stablecoins aligns with its broader blockchain strategy, which includes partnerships with major global banks to develop payment solutions and treasury services. The company has already processed over $1 trillion in global transactions in 2023, with a significant portion facilitated by its Whale platform [4].

The stablecoin market is expected to grow significantly in the coming years. According to David Bakman, an administrative partner at a crypto-native firm, stablecoin supplies may exceed $1 trillion before the end of 2025, potentially becoming a major catalyst for the growth of the cryptocurrency market [2].

References:
[1] https://economictimes.indiatimes.com/tech/technology/ant-unit-plans-to-apply-for-stablecoin-issuer-license-in-hong-kong/articleshow/121799696.cms
[2] https://investorempires.com/jack-mas-ant-group-seeks-stablecoin-license-in-hong-kong-singapore/
[3] https://www.investing.com/news/stock-market-news/ant-group-to-apply-for-hong-kong-stablecoin-license-93CH-4092612
[4] https://www.cryptopolitan.com/jack-ma-ant-international-invests-stablecoin/