Ant International Pursues Stablecoin Licenses in Hong Kong and Singapore, Boosts Ant Financial Concept Stocks

Ant International, the global business arm of China’s Ant Group that owns Alipay+, is planning to apply for stablecoin licenses in Hong Kong and Singapore, according to a Bloomberg report on June 12. The move aligns with the company’s broader strategy to leverage blockchain technology and stablecoins for cross-border financial solutions. Ant International confirmed to The Paper that it will apply for a stablecoin license in Hong Kong following the enactment of the Stablecoin Ordinance on August 1. In response to the news, Ant Financial Concept stocks listed on the Hong Kong Stock Exchange surged, reflecting market optimism about the firm’s blockchain initiatives.

Stablecoin License Applications in Key Financial Hubs

Ant International, headquartered in Singapore, confirmed its intent to apply for a stablecoin license in Hong Kong following the enactment of the Stablecoin Ordinance, set to take effect on August 1. The company expressed support for the Hong Kong Legislative Council’s passage of the Stablecoin Ordinance and pledged to contribute to Hong Kong’s development as a future international financial center.

Beyond Hong Kong, sources informed Bloomberg that Ant International is targeting a stablecoin license in Singapore, a jurisdiction renowned for its progressive regulatory framework for digital assets. The company is also exploring similar opportunities in Luxembourg to strengthen its blockchain business, indicating a multi-jurisdictional strategy for stablecoin issuance.

In response, Ant International stated it is accelerating investments and expanding partnerships in global treasury management, applying innovations in AI, blockchain, and stablecoins to reliable, large-scale use cases. According to sources, Ant Group processed over $1 trillion in global transactions last year, with one-third handled by its blockchain-based Whale platform.

Strategic Partnership with Deutsche Bank

Two days prior to the license news, Ant International announced a strategic partnership with Deutsche Bank to enhance cross-border payment solutions. The collaboration will explore the use of stablecoins for global payments, including real-time treasury management, reserves management, and on-ramp/off-ramp services for Ant International entities.

The mention of “reserves management” is particularly significant, as stablecoin issuers typically rely on banks to manage the cash and government bond reserves backing their digital currencies. Deutsche Bank’s involvement positions it as the first German bank to integrate with Ant International’s blockchain-based treasury management platform, marking a milestone in the adoption of tokenized financial solutions.

In addition to its stablecoin initiatives, Ant International’s partnership with Deutsche Bank will include digital bank deposits and the Falcon TST foreign exchange model, aimed at helping Ant International and its clients reduce costs and risks associated with foreign exchange. The collaboration with Deutsche Bank is expected to enhance Ant International’s ability to offer scalable, blockchain-driven payment solutions for merchants in Europe and Asia.

Market Reaction: Ant Financial Concept Stocks Surge

The announcement triggered a significant rally in Ant Financial-related stocks on the Hong Kong Stock Exchange. The Ant Financial Concept index (BK0362) saw sharp gains, with Yunfeng Financial (00376.HK) spiking as much as 98% intraday before settling at a 53% increase. Shih Teng Holdings (02562.HK) rose nearly 15%, while Yao Cai Securities (01428.HK) climbed over 12.5%.

The market’s enthusiasm reflects confidence in Ant Group’s blockchain strategy and its potential to capitalize on the growing stablecoin market. Stablecoins, which are pegged to fiat currencies like the U.S. dollar, have gained traction for their ability to facilitate fast, low-cost cross-border transactions, making them a critical component of the evolving digital finance landscape.

Ant Group’s Blockchain Journey

Ant Group, backed by founder Jack Ma, has been a pioneer in China’s fintech sector, operating Alipay, one of the world’s largest mobile payment platforms. Its international arm, Ant International, focuses on global payment solutions, serving merchants and consumers across Asia and beyond. The company has invested heavily in blockchain technology since launching AntChain in 2020, which supports applications ranging from supply chain tracking to tokenized assets.

Unlike speculative cryptocurrencies like Bitcoin, stablecoins offer price stability, making them suitable for payments and treasury management. Ant International’s stablecoin initiatives are likely to leverage its existing infrastructure, including Alipay’s vast merchant network, to drive adoption.

Regulatory Context and Industry Implications

Hong Kong’s upcoming Stablecoin Ordinance is part of a broader effort to establish the city as a hub for digital asset innovation. The new regulatory framework aims to ensure consumer protection and financial stability while fostering innovation in the stablecoin sector. Singapore, similarly, has implemented clear guidelines for stablecoin issuers, making it an attractive destination for firms like Ant International.

Ant International’s pursuit of stablecoin licenses comes at a time when global regulators are intensifying scrutiny of digital currencies. In the United States, for instance, regulatory clarity around stablecoins is emerging, with frameworks aimed at ensuring transparency and reserve adequacy. Ant’s proactive engagement with top-tier regulators in Hong Kong, Singapore, and Luxembourg positions it to navigate this complex landscape effectively.