What You Should Know:
- Ant International, part of the Alipay family, is preparing to pursue licenses for stablecoin issuance in Hong Kong and Singapore.
- The company intends to submit its application for a stablecoin license once the new regulatory framework comes into effect in August.
- Hong Kong has been crafting its stablecoin regulatory environment since 2023, with a rollout expected in August.
Ant International is gearing up to apply for stablecoin licenses as recent reports indicate that it aims to embark on this initiative in both Hong Kong and Singapore. Once the regulatory regime is established in August, the firm plans to submit its applications accordingly. Additionally, the organization is also eyeing a similar regulatory approval in Luxembourg.
In recent developments, Hong Kong has made strides in forming a regulatory framework for stablecoins, a process that’s been taking shape since 2023. This new legislation aims to facilitate increased stability in the digital asset market.
Stablecoins serve as tokens that are linked to the value of traditional financial assets, like fiat currencies, allowing greater stability against the fluctuations characteristic of cryptocurrencies like Bitcoin and Ethereum, thus providing a gateway to the digital asset market for numerous financial and technology companies. Increased efforts for stablecoin regulation in major markets worldwide, especially in the United States, are expected to fast-track this trend.
Alipay has distinguished itself as the leading mobile payment platform globally, boasting over one billion users due to its market dominance in China, where it commands a 55% share in third-party payments.
Ant International has not yet provided additional comments regarding this move.
