The company’s Ant International, which is based in Singapore, will apply for the stablecoin issuer’s license in Hong Kong once the region’s Stablecoins Ordinance goes into effect in August Bloomberg reported Thursday (June 12), citing unnamed sources.
In addition, Ant plans to seek a similar permit in Luxembourg as it tries to bolster the blockchain operation supporting its cross-border payment and treasury management services, the report said.
Ant processed over $1 trillion of global transactions last year, a third of which went through Whale, the company’s blockchain-based platform, according to the report.
In the wake of its failed initial public offering in 2020, Ant has been working on other sources of revenue after Chinese regulators restricted its lending business, per the report.
Meanwhile, stablecoins are emerging as an innovation in cross-border payments.
“With layers of intermediaries, opaque fee structures and legacy infrastructure, the cost and complexity of sending money internationally remain disproportionately high for regional and community banks,” PYMNTS reported Friday (June 6). “As large banks use economies of scale and bespoke infrastructure to streamline international transactions, small banks, credit unions and other local financial institutions can find themselves left grappling with high costs, longer processing times and limited transparency.”
Many stablecoins operate on open and programmable blockchain networks, which lets small institutions access a global payment rail without needing to build or maintain it themselves.
“Imagine sending money from here to Uruguay,” Conduit CEO Kirill Gertman told PYMNTS this month. “You open your Venmo, type in the amount, and your friend receives it via Pix in Brazil. You never leave your app. That’s where we’re going.”
However, despite their promise, stablecoins also introduce new risks and regulatory considerations. Stablecoin providers need to maintain reserves and follow transparent, secure frameworks to avoid destabilizing events. In addition, the regulations around these coins remain fragmented.
