Ant Group partners with Circle, its blockchain platform plans to integrate USDC stablecoin.

According to informed sources, Ant Group supported by Jack Ma (Ant Group) is cooperating with Circle Internet Group Inc., an American cryptocurrency finance company, to plan to introduce the latter's stablecoin USDC into Ant's blockchain platform.

Cooperation Details: Compliance First, Time to Be Determined

According to Bloomberg, insiders have stated that Ant Group's international business unit Ant International plans to integrate Circle's USDC stablecoin into its Blockchain platform, provided that the asset fully meets U.S. regulatory compliance requirements. The specific timeline for integration has not yet been finalized. Due to the confidential nature of the matter, the insiders requested anonymity.

Regulatory Benefits and Opportunities for Circle

Stablecoins are gaining broader recognition. In June of this year, the U.S. Senate passed legislation to establish a regulatory framework for cryptocurrencies pegged to the dollar. Completed in June, Circle, which went public, became one of the major beneficiaries of this optimistic sentiment, and it is also one of the few public companies that issue its own stablecoin. In April, Circle announced that it would launch a payment network to help financial institutions use its stablecoin for cross-border transaction settlements.

Boosted by this collaboration news, Circle's stock price rose by 5.4% in pre-market trading on Thursday.

Ant Blockchain Strategy: Embrace Compliant Encryption Assets

This cooperation is also part of Ant International's grand plan, aimed at opening its Blockchain platform (a technology that currently supports its fund management business and cross-border payment services) to more regulated cryptocurrencies, including Central Bank Digital Currency (CBDC) and Tokenized Deposits ( products.

Both Circle and Ant Group declined to comment on this collaboration.

Ant Blockchain Strength and Global Licensing Layout

According to sources familiar with the situation, Ant Group processed over 1 trillion USD in global transactions last year, of which one third was handled by its Blockchain network. In June this year, there were also reports that Ant International is actively seeking to apply for stablecoin licenses in Singapore and Hong Kong, while also applying for relevant permits in Luxembourg.

Stablecoin: The Cornerstone of the Crypto Market and Regulatory Focus

Stablecoins are a type of digital asset designed to maintain value stability, usually pegged to fiat currencies (such as the US Dollar). They are key infrastructure for the operation of the cryptocurrency market, with a total market capitalization of stablecoins in circulation amounting to approximately $250 billion as of June this year. Global regulatory agencies are working to establish rules for this sector, with major concerns regarding stablecoin collapses and money laundering risks.

Ant International: Growth Engine and IPO Potential in the Post-Regulation Era

Since its record-breaking initial public offering (IPO) was halted in 2020, Ant Group has been developing new growth initiatives after its profitable online lending business faced regulatory restrictions in China. Subsequently, Ant International established an independent board to lay the groundwork for its spin-off and potential IPO. According to sources in May, the department generated nearly $3 billion in revenue in 2024 and has achieved adjusted profitability for two consecutive years.

According to estimates from Bloomberg Industry Research, if Ant International chooses to go public in Hong Kong, its IPO valuation could be between $8 billion and $24 billion. Thanks to its handling of massive transactions for affiliated company Alibaba Group Holding Limited's e-commerce platform as well as external clients, Ant International's fund management business is increasingly showing significant growth potential.

Traditional giants entering the arena, stablecoin ecosystem expansion

The Ant Blockchain platform currently supports a variety of tokenized assets from banks and institutions around the world )Tokenized Assets(. It has signed cooperation agreements with more than 10 banks globally, including HSBC Holdings )HSBC Holdings Plc(, BNP Paribas )BNP Paribas SA(, JPMorgan Chase )JPMorgan Chase & Co.(** and Standard Chartered Group** )Standard Chartered Plc(.

With the popularity of cryptocurrency applications, many companies, including financial and technology giants, have gradually entered this field. In 2019, Facebook and Instagram's parent company Meta Platforms Inc. made a high-profile attempt to launch a stablecoin, but the project was terminated after facing strong opposition. In 2023, PayPal Holdings Inc. launched a stablecoin, marking the first significant attempt by a large financial company in this field.

According to reports, Walmart )Walmart Inc.( and Amazon )Amazon.com Inc.( are also discussing the issuance of their own stablecoins.

In addition, there are some tokens that can serve a similar function to stablecoins, acting as collateral )Collateral( in transactions, such as tokenized money market funds )Tokenized Money Market Funds(. Asset management companies, including BlackRock Inc. )BlackRock Inc.( and Franklin Templeton )Franklin Templeton(, have launched such products in recent years.