Tokenization Paves New Green Path as Ant Digital Bypasses Traditional Finance

Ant Digital Technologies, the enterprise solutions arm of Ant Group, is advancing its blockchain initiatives by tokenizing over 60 billion yuan ($8.4 billion) in energy assets, according to multiple sources. By tracking the performance of nearly 15 million new energy devices—such as wind turbines and solar panels—across China and uploading their data to its AntChain platform, the unit is laying the groundwork for tokenization. The blockchain is now being used to issue tokens linked to these physical assets, with financing for three clean energy projects already completed, raising 300 million yuan in total.

The tokenization of real-world assets, while still in its early stages, has been described as a means to facilitate more efficient and cost-effective transactions, as well as to enhance trust between investors and the underlying collateral. This approach allows companies to bypass traditional financial intermediaries, such as loan officers and underwriters, by issuing digital tokens directly to investors who may represent fractional ownership or future revenue streams from the assets. This innovation has the potential to open up infrastructure financing to a broader investor base, including retail participants who are typically excluded from such markets.

In recent financing deals, Ant Digital successfully raised 100 million yuan for Longshine Technology Group in August 2024, linking 9,000 of the company’s electric vehicle charging stations to its blockchain network. Separately, it raised over 200 million yuan in December for GCL Energy Technology Co., a green energy service provider, by tokenizing its photovoltaic assets. These developments highlight the unit’s ability to attract capital for renewable energy projects using blockchain-based mechanisms.

Looking ahead, one of Ant Digital’s proposed expansion strategies involves listing tokens on decentralized offshore exchanges to enhance liquidity, although this will depend on regulatory approvals. The company has also invested in Pharos Network Technology, a public blockchain platform, and has entered into a strategic partnership with Yunfeng Financial Group Ltd. in China Hong Kong, aiming to explore real-world asset tokenization further. This partnership is expected to play a crucial role in navigating the evolving regulatory landscape, especially as Hong Kong implements new rules for stablecoin issuance.

Regulatory developments in Hong Kong are closely watched by Ant Digital, as the city’s approach to digital assets differs from the more restrictive policies of the mainland. The Hong Kong Monetary Authority (HKMA) now oversees stablecoin issuance under the newly enacted Stablecoin Ordinance, with initial approvals expected early next year. In contrast, mainland China has imposed a comprehensive ban on crypto-related transactions, citing concerns over stability and fraud. These regulatory differences present challenges for Ant Digital as it seeks to scale its operations across jurisdictions.

Despite these challenges, Ant Digital’s blockchain initiatives represent a significant step in the broader adoption of real-world asset tokenization. Analysts suggest that blockchain-based financing could become a critical tool in scaling up green infrastructure investments, particularly in regions with capital-intensive needs. Ant Digital’s AntChain platform, which currently hosts the world’s largest blockchain-based registry of energy assets, is positioned to play a pivotal role in this emerging market.

While tokenization remains a small part of Ant Digital’s overall revenue—most of which comes from enterprise technology solutions—its strategic importance is growing. With Ant Group’s global arm, Ant International, also exploring cross-border payments and applying for stablecoin-related licenses, the company appears to be strategically positioning itself at the intersection of blockchain, finance, and sustainability.