Ant International Plans Stablecoin Push in Hong Kong, Singapore

Ant International, the overseas arm of Jack Ma-backed Ant Group, is preparing to launch stablecoins in major Asian financial hubs as the $1 trillion payment processor seeks new growth avenues beyond its traditional fintech operations.

The Singapore-based unit plans to apply for stablecoin issuer licenses in Hong Kong immediately when the city's Stablecoins Ordinance becomes effective in August , according to sources familiar with the matter, Bloomberg reported on Tuesday. The company is also targeting permits in Singapore and Luxembourg as part of a broader blockchain expansion strategy.

The move represents a significant entry into the crypto space for Ant International, which processed over $1 trillion in global transactions last year. Notably, a third of that volume, approximately $333 billion, was already handled through the company's blockchain-based Whale platform, indicating substantial existing infrastructure for digital asset operations, the report said.

Ant's stablecoin initiative aims to strengthen its cross-border payment and treasury management services, leveraging blockchain technology to improve efficiency and transparency in fund transfers. The Whale platform currently supports multiple tokenized assets from banks and institutions worldwide, using advanced privacy computing technologies including homomorphic encryption and multiparty verification systems.

The timing positions Ant International to capitalize on the growing institutional adoption of stablecoins, which represent a $243 billion market as of May. The company's existing banking relationships provide a strong foundation for stablecoin operations, with collaboration agreements already in place with over 10 major global banks including HSBC, BNP Paribas, JPMorgan Chase, and Standard Chartered. This week, Ant also announced a strategic partnership with Deutsche Bank for payment solutions and treasury management.

For Ant International, stablecoins represent a natural evolution of its treasury business, which has shown significant growth potential due to the massive transaction volumes it processes for affiliate Alibaba Group's e-commerce platforms and external clients. The unit generated nearly $3 billion in revenue for 2024 and has achieved two consecutive years of adjusted profit.

The expansion comes as Ant Group seeks new growth drivers following regulatory constraints on its lucrative online lending business in China since 2020. The international unit has established an independent board structure, positioning it for a potential spinoff and IPO that Bloomberg Intelligence estimates could achieve valuations between $8 billion and $24 billion in Hong Kong.

Ant's entry into stablecoins follows a broader trend of major financial and technology companies embracing digital assets. PayPal launched its own stablecoin in 2023, marking the first major effort from a large financial services company, while asset managers including BlackRock and Franklin Templeton have created tokenized money market fund products that function similarly to stablecoins.

The regulatory landscape in Hong Kong and Singapore provides a clearer framework for stablecoin operations compared to other jurisdictions. Hong Kong's incoming Stablecoins Ordinance and Singapore's progressive digital asset regulations offer institutional-grade compliance pathways for companies seeking to operate legitimately in the space.