Ant International Plans Stablecoin Licenses in Singapore Hong Kong

Ant International, the overseas arm of Jack Ma-backed Ant Group Co., is planning to apply for regulated stablecoin licenses in Singapore and Hong Kong. The company aims to issue fiat-referenced stablecoins in these Asian jurisdictions, with potential expansion to Luxembourg. This move is part of Ant International's strategy to strengthen its blockchain-based financial infrastructure for cross-border payments and treasury management services.

The Singapore-based entity is expected to initiate its application for a stablecoin issuer’s license in Hong Kong as early as August, following the implementation of the city’s forthcoming Stablecoins Ordinance. A spokesperson for Ant International confirmed this plan, stating, “We plan to apply for the fiat-referenced stablecoins (FRS) issuer’s license once the process is open after the Stablecoins Ordinance takes effect on August 1.”

Ant International's blockchain expansion marks a shift from its previously dominant lending business in China, which faced tighter regulatory control after the abrupt halt of Ant Group’s record-breaking IPO in 2020. The company has already signed collaboration agreements with over 10 global banks, including major players such as HSBC Holdings Plc, BNP Paribas SA, JPMorgan Chase & Co., and Standard Chartered Plc. Recently, it added Deutsche Bank AG to its list of partners to co-develop payment solutions and treasury services.

Since the suspension of its IPO, Ant Group has been exploring new market growth initiatives. Regulatory crackdowns in China halted its once-profitable online lending operations under two platforms, Huabei and Jiebei. In January 2022, Chinese regulators imposed stricter rules on online lending, requiring internet platforms and banks to contribute at least 30% of the funding for loans issued jointly. Before the new mandate, Ant Group’s micro-lending arms, Jiebei and Huabei, typically provided just 1% to 2% of the capital for such loans.

Ant International is not alone in its pursuit of stablecoin development. Several major tech firms and traditional asset managers are also entering the stablecoin market. For instance, Meta Platforms Inc. attempted to launch its own stablecoin project in 2019 but abandoned the plan due to backlash from US lawmakers and the central bank. Traditional asset managers like BlackRock Inc. and Franklin Templeton have introduced tokenized money market funds, similar to stablecoins, for use in collateralized trading. Additionally, France’s Societe Generale announced plans to launch a publicly tradable, dollar-backed stablecoin called “USD CoinVertible,” which will be issued on Ethereum and Solana blockchains and regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework.

Ant International's move to apply for stablecoin licenses in Singapore and Hong Kong is a strategic step to diversify its financial services and strengthen its position in the global market. By leveraging its blockchain-based infrastructure and partnerships with major banks, the company aims to facilitate cross-border payments and treasury management services more efficiently. This initiative also reflects Ant International's adaptability in the face of regulatory challenges, as it pivots from its lending business to explore new opportunities in the stablecoin market.