Ant Group seeks stablecoin license in HK as laws go into effect August

Alibaba-backed (9988) Ant Group’s international unit plans to apply for stablecoin licenses in Hong Kong as soon as the city’s stablecoin law goes into effect in August, with its stablecoin business set to surpass US$150 billion (HK$1.17 trillion).

Singapore-based Ant International is also planning to seek a permit in Singapore and Luxembourg, according to a Bloomberg report.

The fintech firm’s move aims to boost its blockchain operation underpinning its cross-border payment and treasury management services, the report said. 

Ant processed over US$1 trillion of global transactions last year, a third of which were handled by its blockchain-based Whale platform, according to the report.

Based on this calculation, Ant International will have over US$300 billion in funds managed using blockchain technology globally in 2024. If half of that can be implemented in stablecoin applications, the stablecoin transaction volume in its own existing business could reach over US$150 billion, local media reported.

According to Hong Kong’s stablecoin law, issuers in the city must back stablecoins with assets including time deposits of less than three months and additional collateral, ensuring stability and reliability. 

Issuers are also required to meet a minimum capital requirement of US$25 million, and issuers and trading platforms are subject to strict regulation. 

Since Ant’s record initial public offering was halted in 2020, the group has been developing new initiatives to boost growth as its lucrative online lending business got handicapped by Beijing.

STAFF REPORTER