Payment giants plan to launch stablecoin to expand Financial Service in Asia

A well-known internet entrepreneur's financial technology department is actively preparing to launch a stablecoin business in a major financial center in Asia. This large-cap payment processor is looking to explore new growth areas beyond traditional financial technology services.

According to reports, the company's overseas subsidiary plans to immediately apply for a stablecoin issuance license after the new regulations in Hong Kong come into effect. As part of its broader blockchain expansion strategy, the company also intends to apply for relevant licenses in Singapore and Luxembourg.

This move marks the company's official entry into the cryptocurrency space. Last year, the company processed a total global transaction volume of over 1 trillion dollars, with about one-third being processed through the company's blockchain-based platform, demonstrating the company's extensive experience in digital asset operational infrastructure.

The company's stablecoin program aims to enhance its cross-border payment and fund management service capabilities, utilizing blockchain technology to improve the efficiency and transparency of fund transfers. Currently, the company's blockchain platform supports various tokenized assets from global banks and institutions, and employs advanced privacy computing technologies such as homomorphic encryption and multi-party verification systems.

This opportunity is favorable for the company to grasp the growing demand from institutional investors for stablecoins. In May of this year, the market size of stablecoins reached 243 billion USD. The company's existing banking partnerships lay a solid foundation for its stablecoin business, having established partnerships with several major global banks. Recently, the company also announced a strategic partnership with a large German bank to jointly provide payment solutions and financial services.

For the company, stablecoins represent a natural extension of its fund management business. Due to handling a large volume of transactions for affiliated e-commerce platforms and external clients, this business has demonstrated tremendous growth potential. The department's revenue in 2024 is close to $3 billion and has achieved adjusted profits for two consecutive years.

This business expansion comes at a time when the company is seeking new growth drivers. Since 2020, its online lending business in China has been subject to regulatory restrictions. The company's international division has established an independent board structure in preparation for a potential spin-off and listing, with analysts estimating that the valuation of this business in Hong Kong could range from $8 billion to $24 billion.

The company is entering the stablecoin field, coinciding with the major trend of large financial and technology companies embracing digital assets. Last year, a well-known payment company launched its own stablecoin, marking the first significant move by a large financial service company in this domain. At the same time, some large asset management companies have also created tokenized money market fund products that function similarly to stablecoins.

Compared to other regions, the regulatory environment in Hong Kong and Singapore provides a clearer framework for stablecoin operations. The new regulations soon to be implemented in Hong Kong and Singapore's advanced digital asset regulations offer institutional-level compliance pathways for companies wishing to operate legally in this field.