Jack Ma's fintech company is preparing to enter the stablecoin market

Ant Group's overseas subsidiary Ant International is actively preparing to launch stablecoin services in major financial centers in Asia. This payment processing giant is seeking new growth points beyond its traditional fintech business.

According to reports, this Singapore-based company plans to immediately apply for a stablecoin issuance license after the relevant regulations in Hong Kong come into effect in August. As part of its broader blockchain expansion strategy, the company also intends to apply for relevant licenses in Singapore and Luxembourg.

This move marks Ant International's official entry into the cryptocurrency space. Last year, the company's global transaction processing volume exceeded $1 trillion, with about one-third completed through its blockchain-based Whale platform, demonstrating the company's rich experience in digital asset operational infrastructure.

Ant International's stablecoin program aims to enhance its cross-border payment and fund management services, leveraging blockchain technology to improve the efficiency and transparency of fund transfers. Currently, the Whale platform supports a variety of tokenized assets from global banks and institutions, employing advanced privacy computing technologies such as homomorphic encryption and multi-party verification systems.

The timing is quite favorable, as Ant International is expected to seize the growing demand from institutional investors for stablecoins. As of May this year, the stablecoin market has reached a scale of $243 billion. The company's partnerships with several major global banks have laid a solid foundation for its stablecoin business. This week, Ant International also announced a strategic partnership with Deutsche Bank to jointly provide payment solutions and fund management services.

For Ant International, stablecoins represent a natural extension of its fund management business. This business has shown tremendous growth potential, with revenue approaching $3 billion in 2024, and has achieved adjusted profitability for two consecutive years.

This business expansion comes at a time when Ant Group is seeking new growth momentum, as its online lending business in China has faced regulatory restrictions since 2020. The international business division has established an independent board structure in preparation for a potential spin-off and IPO. Industry estimates suggest that the business could be valued between $8 billion and $24 billion in Hong Kong.

Ant International is venturing into the stablecoin sector, aligning with the widespread trend of large financial and technology companies embracing digital assets. In 2023, some major financial service companies launched their own stablecoins, while certain asset management firms created tokenized money market fund products with functionalities similar to stablecoins.

Compared to other regions, the regulatory environment in Hong Kong and Singapore provides a clearer framework for stablecoin operations. The upcoming relevant regulations in Hong Kong and Singapore's advanced digital asset regulations offer institutional-grade compliance pathways for companies wishing to operate legally in this field.