Core Viewpoint - The article discusses the increasing interest of various institutions in participating in the Hong Kong dollar stablecoin market, with Ant Group being the latest entrant to apply for stablecoin licenses in Hong Kong and Singapore [1][4]. Group 1: Market Developments - Ant Group plans to apply for stablecoin licenses through its subsidiaries in Hong Kong and Singapore, joining other major players like JD.com and Standard Chartered in this initiative [1][4]. - The Hong Kong Legislative Council has passed the Stablecoin Ordinance, expected to take effect in August, establishing a regulatory framework for stablecoin issuance [3]. Group 2: Industry Dynamics - The stablecoin market is characterized by three main competitive forces: traditional financial institutions, native cryptocurrency companies, and technology firms, each with distinct advantages [5]. - Traditional financial institutions possess strong political resources and compliance capabilities but tend to move at a slower pace, while technology companies are more agile and have user engagement [5]. Group 3: Industry Chain Structure - The stablecoin industry chain includes several key components: issuance, custody/reserve management, technical support, wallet/payment interfaces, compliance and auditing, and user access [7][10]. - Custody and reserve management are critical, with traditional financial institutions likely to play a major role in managing the assets backing stablecoins [8]. Group 4: Technological and Regulatory Considerations - The article highlights the importance of blockchain and smart contract technology in supporting stablecoin issuance, with potential partners including HashKey Chain and Circle [8]. - Regulatory expectations will likely require the development of secure wallets that can coexist with market-driven wallets, ensuring high standards for custody service providers [9]. Group 5: Future Outlook - The emergence of compliant stablecoins is expected to transform cross-border payments, allowing users to conduct transactions on blockchain networks without relying on traditional bank accounts [9]. - Despite the Hong Kong dollar not being a mainstream currency, the region's proactive approach may position it as a leading international financial center for compliant local currency stablecoins [10].