Ant Group and its affiliated entities are applying for stablecoin licenses in places like Hong Kong and Singapore. Some are preparing, some have already started the application process and are in communication with regulators, waiting for the relevant systems in Hong Kong to take effect in August to move forward. The goal is to expand blockchain and other businesses and support financial development.
The Hong Kong Legislative Council has passed the "Stablecoin Regulation Draft", which will take effect on August 1. This indicates that the stablecoin industry is beginning to be regulated and will no longer be in a state of no oversight as it was before; in the future, everything must follow the rules. This will create a safer and more orderly environment for the cryptocurrency space, and global regulation of virtual currencies is becoming stricter.
Ant Group has many users, wealth, and technology. Once it enters the stablecoin field, it will combine AI and blockchain technologies with stablecoins, potentially developing many new financial services, such as making cross-border payments more convenient, cost-effective, and efficient, bringing new development opportunities to the cryptocurrency space.
With such a large company entering the market, it will certainly attract more investors, institutions, and talent to pay attention to the cryptocurrency space, bringing more capital and resources, making the development of the cryptocurrency market more lively. Currently, USDT dominates the stablecoin market, but with Ant Group's entry, competition will undoubtedly become more intense. With its advantages, it may capture market share in areas like cross-border payments. Other issuers will also need to improve their products and services to avoid falling behind. Not only stablecoin issuers, but companies providing technology, compliance services, and trading platforms in the cryptocurrency ecosystem will also face intensified competition in the future.
In fact, Hong Kong's various operations also reflect China's attitude towards the cryptocurrency market. The cryptocurrency market is uncontrollable, which is why it has been banned domestically. If it gradually moves towards regulation and stablecoin shares can be controlled by China, I believe the gradual opening will become closer and closer.
