Luxembourg’s early embrace of markets in crypto-assets regulation made it the logical base for Ant Group’s first EU move into regulated digital money, with Alipay (Europe) Limited SA by the Luxembourg Financial Sector Supervisory Commission (CSSF) to issue e-money tokens across the bloc. That paved the way for a euro-backed stablecoin aimed at faster and cheaper cross-border settlement for European merchants and travellers. By design, an euro EMT is intended to hold par value at all times: one token equals €1, with full redemption on demand at €1.

Why Luxembourg

Luxembourg was among the first EU jurisdictions to operationalise MiCA for token issuers, offering a defined process, on-site supervisory powers and an EU-wide passport once approved. Titles III and IV of MiCA, covering issuers of e-money tokens, had applied since 30 June 2024, giving the CSSF a head start in assessing euro-denominated tokens that must keep stable value and honour redemption. The CSSF set out its and publicly, signalling a mature regime that large payments groups could navigate at scale. For global players, certainty and passportability across 27 countries were the prize.

What it means for Ant Group

The Singapore-headquartered fintech arm of Ant Group, Ant International, frames stablecoins as payments infrastructure rather than speculative crypto. “Firstly, we would not be focusing on crypto transactions… we’ll be focusing on global payments,” Kelvin Li, head of platform tech at Ant International, said at Reuters Next in Singapore on 9 July, adding that stablecoins can deliver more efficient cross-border payments and better customer experience. That stance aligns with MiCA’s EMT model, which mirrors e-money obligations around capital, safeguarding and redemption.

But it is not the scope but the sheer potential scale that makes the Luxembourg EMT authorisation consequential. Ant International claims its Alipay+ network connects 36 different wallets with 1.7bn consumer accounts and more than 100m merchants across over 70 markets. Some estimates suggest Ant International reached a $1trn mark in total transactions in 2024, but we cannot confirm the figure.

While EU-specific numbers are not public, any euro stablecoin is expected to jump-start digital payment solutions across the board and give a head start before the European Central Bank’s digital euro, which is not slated before May 2026, Luis de Guindos, vice-president of the ECB, has . Moreover, such a stablecoin would be a boon for international travellers and e-commerce corridors used by European shoppers and inbound tourists.

Finally, should Ant issue a substantial amount of euro-denominated stablecoins, it could not only have a knock-on effect on payment solutions and establish itself as a major player in the EU, it could also have domino effects on cash management, instant settlement and forex markets.

Cross-border payments and fast settlements

A regulated euro EMT could shorten settlement cycles from days to seconds on compatible blockchains, reduce frictions in multi-currency flows and lower payment and transaction costs. Moreover, a MiCA-compliant euro token, redeemed in central bank money via supervised intermediaries, could reduce forex frictions. Together, there is a clear reward for Ant International’s stated focus on payments.

Policy backdrop and the CNY corridor

On 8 September 2025 the ECB and People’s Bank of China their bilateral euro-renminbi swap line for three years, keeping the maximum size at CNY 350bn and €45bn. The Eurosystem said the arrangement served as a backstop to address sudden and temporary CNY liquidity shortages at euro-area banks during market disruptions, supporting financial stability and reflecting large euro-area-China trade and investment flows.

In theory, Ant could also play a major role during volatility by supporting the broader euro-CNY payments corridor and the banks that provide forex. In stress, that backstop could help keep on- and off-ramp banking services functioning for merchants and PSPs converting between euro EMT balances and CNY receivables or payables. In normal conditions, the line could remain dormant and conferred no pricing advantage to issuers.

What could happen next

With an EU passport in hand, Alipay (Europe) Limited could issue a euro EMT by notifying the CSSF 40 working days in advance before offering tokens, then link it into the Alipay+ merchant network and travel corridors. It is important to note that Ant International is pursuing stablecoin issuer approvals in Hong Kong and Singapore, and thereby could open a larger EU-Asia payments and travel market, making it a de facto leader in cross-border payments. The company had said earlier that it would not facilitate crypto trading.

Paperjam sought comment from Alipay (Europe) Limited and Ant International by email but received no reply. The Luxembourg subsidiary’s listed phone number was unreachable at the time of publication.