Singapore-based Ant International and the Hangzhou-based Ant Digital, two affiliates of Chinese tech giant Ant Group, have announced plans to apply for stablecoin issuer licences in Hong Kong once the new ordinance governing fiat-backed cryptocurrencies takes effect in August.

“We welcome the passage of the Stablecoins Bill … and hope to contribute more to the city’s vision as a global hub for next-gen finance,” Ant International, a spin-off of Ant’s global operations, said in a statement on Thursday. “We plan to apply for the fiat-referenced stablecoins issuer’s licence once the process is open after the Stablecoins Ordinance takes effect on August 1.”

Separately, Ant Digital, which began operating as an independent entity last year, has also started planning to apply for a stablecoin licence in the city, Bian Zhuoqun, a vice-president of Ant Group and the president of blockchain business at Ant Digital, told Chinese media outlet Jiemian.

The moves come as a show of support for Hong Kong’s ambition to stay at the forefront of global finance. Ant International also plans to apply for a stablecoin licence in Singapore, where the company is based, Bloomberg reported on Thursday. Ant Group is an affiliate of Alibaba Group Holding, owner of the South China Morning Post.

On May 21, Hong Kong’s Legislative Council passed a law requiring that issuers of stablecoins – which are typically backed one-to-one by fiat currencies such as the US dollar – be licensed by the Hong Kong Monetary Authority. The government announced last week that the law would take effect in August, at which point companies can apply for the licence. This makes the city one of the first jurisdictions to introduce detailed regulations governing the issuance of stablecoins, coming ahead of the US Genius Act currently making its way through the Senate.

Several other companies have already announced plans to apply for the licence and issue Hong Kong dollar-backed stablecoins. Some have been testing use cases in a government-backed stablecoin sandbox, including Jingdong Coinlink Technology, a subsidiary of JD.com, Alibaba’s main e-commerce rival in mainland China.