What happened?
Chinese fintech giant Ant International plans to cooperate with Circle to introduce the US Dollar stablecoin USDC into its blockchain platform, which is expected to be integrated into Alipay in the future, opening the door for Circle to enter the Chinese market.
Ant Group is actively laying out Web3, and its blockchain platform has partnered with several international banks while planning to introduce CBDC and tokenized assets. In 2024, Ant Group processed over $1 trillion in global transaction volume, with about one-third completed through the blockchain platform.
Although China restricts cryptocurrency trading, stablecoins still have application space. Foreign media analyze that if USDC successfully enters Alipay, it may trigger concerns over financial sovereignty, and the Chinese authorities might impose new regulations to limit its influence in the future.
Ant International's collaboration with Circle may integrate USDC into Alipay.
According to reports from Bloomberg, Chinese fintech giant Ant Group's overseas market division, Ant International, is planning to collaborate with US stablecoin issuer Circle to introduce USDC into the group's blockchain platform, provided that Circle first completes the US regulatory compliance procedures.
Even though there is currently no clear timeline for cooperation, informed sources revealed that once conditions mature, this collaboration will be rapidly initiated.
Circle is currently one of the few stablecoin companies publicly listed in the United States, with a market value of around $62 billion for its issued USDC, making it the second-largest USD stablecoin globally, only behind Tether (USDT), which has a market value approaching $160 billion. After the US stablecoin regulation bill (GENIUS Act) passed the Senate, Circle's compliance conditions gave it an advantage in international deployment and made it an ideal partner for financial giants.
The highlight of this collaboration is that USDC may be integrated into Ant Group's payment platform, Alipay. As one of China's main electronic payment tools with over 1 billion monthly active users, if USDC is successfully introduced, it will open the door for Circle to enter the Chinese market, bringing unimaginable application scale.
Although the Chinese government has previously banned cryptocurrency trading and mining, stablecoins still provide advantages in cross-border settlement and trade payments, maintaining limited applications in gray areas. This collaboration with Ant Group also demonstrates a higher acceptance of 'compliant and controlled' USD stablecoins among China's large tech companies.
Ant Group is actively laying out Web3
Reports indicate that Ant International's blockchain layout goes beyond USDC, as the group’s blockchain ecosystem has supported various tokenized assets from banks and institutions, signing cooperation agreements with more than ten major global banks, including HSBC, BNP Paribas, JPMorgan, and Standard Chartered. In the future, the company plans to introduce central bank digital currencies (CBDC) and tokenized deposits as regulated assets to strengthen cross-border settlement and financial management services.
Informed sources revealed that last year, Ant Group processed over $1 trillion in global transaction volume, with about one-third completed through its blockchain platform, and this business has been increasing its share of Ant International's revenue year by year.
In 2024, Ant International is expected to generate nearly $3 billion in revenue, achieving adjusted profitability for two consecutive years and rumored to be considering an IPO in Hong Kong, with a valuation between $8 billion and $24 billion.
For Circle, this collaboration with Ant Group not only opens the Asian market but also allows it to initially occupy the position of competitor Tether. Although USDT's market share is still far ahead, Circle is actively establishing partnerships with exchanges and financial institutions to enhance the adoption of USDC.
Circle is also actively cooperating with the regulatory requirements of the US (GENIUS Act), and is expected to be one of the first companies to obtain an official stablecoin license, solidifying its legitimacy and trust foundation for international expansion.
The Dual Challenge of the Chinese Market: Opportunities and Sovereignty Anxiety Coexist
China's attitude toward USD stablecoins remains contradictory. On one hand, Chinese tech companies value the potential of stablecoins in cross-border payments and asset tokenization; on the other hand, Chinese officials and academia are concerned about the risks of 'dollarization.'
Chinese financial experts point out that if USD stablecoins flow into the country on a large scale, it may affect the sovereignty of the Renminbi and weaken the independence of China's monetary policy. If USDC can indeed enter mainstream application platforms like Alipay in the future, Chinese regulatory agencies are likely to control its influence through new restrictions or regulatory mechanisms.
However, regardless of the outcome, this cooperation has clearly shown that stablecoins are no longer just a language among 'crypto enthusiasts' but a battlefield for the next generation of payment networks and financial sovereignty.
Source: CryptoSlate, Bloomberg
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