Ant International to apply for stablecoin issuer license in Hong Kong

Ant International, the overseas arm of Chinese mainland financial technology giant Ant Group, said on Thursday that it will apply for the issuer license of fiat-referenced stablecoins in Hong Kong when the city's Stablecoins Ordinance comes into effect on Aug 1.

"Ant International is accelerating investments and expanding banking partnerships in global treasury innovations, to transform our cutting-edge AI, blockchain and stablecoin technologies into reliable, large-scale real-world applications," the company said in a statement to China Daily.

The company said it welcomes the passage of the Stablecoins Bill by the Legislative Council of the Hong Kong Special Administrative Region and hopes to contribute more to the city's vision as a global hub for next-gen finance.

"We plan to apply for the fiat-referenced stablecoins issuer's license once the process is open after the Stablecoins Ordinance takes effect on August 1," the company said.

The move comes after the Legislative Council of the HKSAR passed the Stablecoins Bill in late May, formulating a licensing regime for fiat-referenced stablecoins issuers in Hong Kong.

Stablecoins are digital assets backed by stable assets, such as currencies, to maintain a stable value. Fiat-referenced stablecoins are backed by fiat currencies that are government-issued money not backed by a physical asset such as gold.