Ant Group Plans USDC Integration for Cross-Border Payments

Ant Group, the financial technology affiliate of Alibaba Group, is reportedly planning to integrate Circle’s USDC stablecoin into its blockchain platform. This move comes despite the company's ongoing efforts to promote a yuan-based stablecoin, which aims to challenge the dominance of the U.S. dollar in global transactions. The collaboration would see Ant Group’s international unit adopt USDC on its proprietary blockchain once the stablecoin meets full compliance under US regulatory frameworks. The exact timeline for the integration remains unclear, but sources indicate that Ant Group plans to tap USDC for cross-border payment and treasury operations since it offers faster and more regulated digital payment options for global businesses. If confirmed, the move would mark a significant step in bridging U.S.-issued digital assets within China’s fintech infrastructure.

Ant Group has been actively strengthening its global footprint ever since the Chinese regulators blocked its record-breaking IPO launch in 2020. It has since diverted its focus towards international expansion through its global arm, Ant International. Its proprietary blockchain network, dubbed Ant Chain, has been at the forefront of Ant’s expansion strategy. This infrastructure now underpins a growing suite of services, including cross-border settlement, treasury management, and tokenization of real-world assets. Currently, Ant is working with more than 10 global banks, including HSBC, JPMorgan, and Standard Chartered, to expand the platform’s capabilities even further.

When it comes to stablecoins, Ant has been lobbying for the adoption of yuan-backed stablecoins. Alongside JD.com, Ant Group has reportedly urged the People’s Bank of China to allow offshore yuan-pegged stablecoins in Hong Kong, arguing that a lack of digital yuan alternatives could pose strategic risks as global reliance on dollar-backed stablecoins grows. In recent months, Chinese exporters have turned in greater numbers to stablecoins like USDT and USDC for overseas payments. Executives from both firms have reportedly stressed that offshore yuan stablecoins are essential to improving the efficiency of cross-border payments and remaining competitive within the global economy. Ant Group plans to apply for stablecoin issuer licenses across several jurisdictions and will be among the very first in Hong Kong to seek approval under the special administrative region’s new Stablecoins Ordinance, which will take effect on August 1. Other jurisdictions the company plans to operate in include Singapore and Luxembourg.

Despite its public support for yuan-based solutions, Ant’s potential interest in integrating USDC might be a practical move to accommodate prevailing market dynamics. Dollar-backed stablecoins currently dominate global crypto payments and liquidity flows, making USDC a strategic choice for Ant’s cross-border services in the near term. The integration of USDC is seen as a strategic decision by Ant Group to leverage the benefits of a more regulated and faster digital payment system. USDC, backed by Circle, offers a stable and transparent digital asset that can facilitate smoother cross-border transactions. This integration could potentially enhance Ant Group's capabilities in international payments, making it more competitive in the global financial landscape.

The push for a yuan-based stablecoin, on the other hand, reflects Ant Group's broader strategy to support China's efforts in internationalizing its currency. By developing a stablecoin pegged to the yuan, Ant Group aims to reduce reliance on the U.S. dollar and promote the use of the yuan in global trade and finance. This initiative aligns with China's broader economic goals of increasing the yuan's influence in the international financial system. The dual approach of integrating USDC while also promoting a yuan-based stablecoin highlights Ant Group's flexible and forward-thinking strategy. By embracing both USDC and a yuan-based stablecoin, Ant Group can cater to different market needs and regulatory environments, ensuring its financial services remain competitive and compliant. This strategy also positions Ant Group as a key player in the evolving landscape of digital currencies and cross-border payments.