Core Insights - The stablecoin industry is witnessing increased interest from major institutions, with Ant Group being the latest to apply for stablecoin licenses in Hong Kong and Singapore [1][3] - The Hong Kong Legislative Council has passed the Stablecoin Regulation Bill, expected to take effect in August, establishing a licensing system for Hong Kong dollar stablecoins [3][4] - The stablecoin ecosystem involves a comprehensive supply chain, including issuance, custody, technical support, payment interfaces, compliance, and user access [6][8] Industry Developments - Major internet companies and financial institutions are positioning themselves to apply for fiat stablecoin licenses, with banks and fintech firms being the most qualified [2][3] - Ant Group's application involves two subsidiaries, indicating a strategic move to leverage its technological capabilities and application scenarios [3][4] - Standard Chartered is collaborating with Ant Group and Hong Kong Telecom to establish a joint venture aimed at issuing a Hong Kong dollar stablecoin [4] Market Dynamics - The stablecoin market is characterized by competition among traditional financial institutions, crypto-native companies, and tech firms, each with distinct advantages [5][6] - The emergence of compliant stablecoins is expected to transform cross-border payments, allowing users to transact without relying on traditional bank accounts [8] - The industry is still in its early stages, with no dominant players yet, presenting opportunities for various participants to establish themselves [5][6] Technological and Regulatory Aspects - The stablecoin supply chain requires robust technological infrastructure, including wallet systems and compliance measures, to ensure security and regulatory adherence [6][7] - Regulatory frameworks are anticipated to demand high standards for wallet services, allowing both official and market-driven wallets to coexist [7] - The push for stablecoins is seen as a significant step towards modernizing Hong Kong's financial infrastructure and enhancing its status as an international financial center [8]