After experiencing a shattered IPO dream and a regulatory storm in 2020, part of Ant Group is moving towards a stablecoin strategy. This technology giant led by Jack Ma is not only actively applying for stablecoin licenses in Hong Kong, Singapore, and Luxembourg but also trying to make blockchain and digital currencies the core pillars of its internationalization strategy, reshaping the Asian fintech landscape.
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ToggleFrom IPO Setback to Overseas Rebirth: Ant Group's International Pivot
Since Ant Group's $34.5 billion IPO was halted by Chinese regulatory authorities in 2020, the company has been forced to significantly adjust its business strategy, gradually shifting from focusing on consumer finance to becoming a technology platform concentrating on enterprise services and international markets.
In 2024, Singapore-based Ant International generated nearly $3 billion in revenue and has been profitable for two consecutive years, indicating steady growth momentum in its international division. Recently, it established an independent board of directors, preparing for potential spin-off and listing, with Bloomberg estimating its valuation could range between $8 billion and $24 billion.
New Stablecoin Competitor: Ant Secures Licenses in Hong Kong and Singapore
According to Bloomberg, Ant International will immediately apply for licenses after Hong Kong's new stablecoin regulations officially take effect in August, while also planning to obtain legal operating qualifications in financial hubs like Singapore and Luxembourg.
This move demonstrates Ant's active integration of stablecoins into its cross-border payment and corporate financial solutions, especially targeting Alibaba's e-commerce ecosystem and large third-party enterprises. Ant International has already signed cooperation agreements with over 10 global major banks, including HSBC, BNP Paribas, JPMorgan Chase, and Standard Chartered.
It's worth noting that Ant's stablecoin venture is not just talk. The company's global payment platform processed over $1 trillion in transactions last year, with about one-third completed through its self-developed blockchain system "Whale", demonstrating its deep investment in blockchain infrastructure.
The Whale platform not only supports asset tokenization for global banks but also carries advanced privacy computing technologies, including homomorphic encryption and multi-party verification, laying a solid foundation for future stablecoin and corporate cash flow services.
Global Regulation Accelerates: Hong Kong and Singapore Become New Strategic Highlands
Currently, governments worldwide are accelerating legislation in the digital asset domain to address potential financial stability and money laundering risks. On one hand, Hong Kong is gradually becoming a key hub for crypto asset legalization through its increasingly clear regulatory framework.
On the other hand, the Monetary Authority of Singapore (MAS) has recently officially stated that it will strengthen regulation of digital asset services, requiring businesses targeting local or overseas markets to be licensed. This policy adjustment has prompted the industry to rethink operational locations and compliance strategies, bringing new strategic opportunities to the Asian crypto industry.
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Ant Group follows regulatory trends, choosing Hong Kong and Singapore as a bridge between global financial markets, indicating the company's intention to bet on the stablecoin domain under the premise of compliance.
Jack Ma's Prediction Comes True: Ant Redefines Digital Finance with Stablecoins
Ant's stablecoin strategy not only provides technical support for its cross-border payment and corporate fund management services but also symbolizes the payment giant's determination to break free from Chinese regulatory shadows and fully transform towards financial technology and compliant markets. Perhaps, as Jack Ma said before fading from the industry's view in 2020:
Digital currencies may redefine currency. Although the main functions of currency remain, it will definitely redefine currency, just like how the iPhone redefined phones, with making calls being just one function.
He seems to be continuing to pursue this concept, and if the stablecoin license is successfully approved, Ant Group is expected to once again become a leader in digital financial innovation.
Risk Warning
Crypto investment carries high risk, with potentially extreme price volatility. You may lose all your principal. Please carefully assess the risks.
As gold prices repeatedly hit new highs, the silver market is also gaining attention. Otavio Costa, macro strategist at hedge fund Crescat Capital, suggests that silver may be entering a supercycle and is poised to challenge the historical high of $50 per ounce set in 2011. Silver is catching up with gold, Costa told Benzinga. He believes silver's long-term weak performance is about to reverse, especially given the current market environment similar to past prosperous cycles, indicating a new bull market may have started. Pure market observation, not investment advice.
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ToggleSolar Market Tightness and Demand Surge Boost Silver Prices
Since early June, silver prices have risen over 10%, reaching $36.80 on Monday, a new high since 2012, currently staying at $36.42, with an approximately 24.8% increase over the past year. Costa believes silver is at a critical turning point, with supply-side challenges in discovering new mines and demand-side structural changes driven by the green energy industry.
Costa states that solar panel demand is rapidly growing, with the solar industry now accounting for 15% to 17% of global silver demand, a significant increase from single digits a few years ago, reflecting the energy transition's impact on the silver market.
Silver Price Reversal and Upward Opportunity Approaching
Costa particularly highlights the Gold-Silver Ratio difference, which may bring a reversal and upward opportunity for silver. Currently, silver trades at one-hundredth the price of gold, with analysts estimating more upside potential. Costa suggests silver prices will experience a dramatic rebound.
Costa believes silver is transitioning from a purely industrial metal to a monetary asset, similar to gold's hedging function. Once prices start rising, silver will no longer be just an industrial metal but become a monetary metal.
Key Threshold of $50
The next important technical resistance for silver prices is at $50, a level touched twice before in 2011 and during the 1979 Hunt Brothers market manipulation event. Costa emphasizes that breaking this threshold will push silver into a "price discovery phase" with unpredictable subsequent gains. He states that after breaking $50, it will enter an entirely new price range.
Chinese Buyers Paying Premium for Physical Silver
Costa notes unusual signs in the physical silver market. Over the past 6 to 12 months, Chinese buyers have been willing to pay $1 to $3 per ounce premium to acquire silver concentrates. This physical premium is beginning to be reflected in futures prices, indicating growing market supply-demand imbalance.
Crescat Capital, owning the world's largest silver mine San Cristobal, has its silver investment outlook closely watched by the market.
Note 1: 1979 Hunt Brothers Silver Manipulation "Silver Thursday" Event
Between 1979 and 1980, American Texas oil tycoons Hunt Brothers attempted to monopolize the market by massively acquiring physical silver and futures contracts, causing silver prices to surge from $6 to nearly $50 per ounce. This crazy price surge alerted regulators, and in March 1980, due to margin call failures, prices crashed over 50%, known as "Silver Thursday," shocking global financial markets and prompting the US to strengthen commodity market regulations.
Risk Warning
Crypto investment carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
