AntChain Pioneers New Energy Finance Era with $8B in Tokenized Assets

Ant Digital Technologies, the enterprise solutions unit of China’s Ant Group, is advancing the tokenization of over $8.4 billion in energy infrastructure on its AntChain blockchain platform. The company has begun tracking data from approximately 15 million new energy devices, including wind turbines and solar panels, across China. This data, encompassing power output and potential outages, is being uploaded onto AntChain, a move that aims to create a digital representation of physical assets for potential investment and financing opportunities [1].

So far, Ant Digital has successfully completed financing for three clean energy projects through the tokenization of real-world assets, raising a total of 300 million yuan ($42 million) for the companies that operate the assets. These projects include the support of Shenzhen-listed Longshine Technology Group in August 2024, where 9,000 electric charging units were linked to the blockchain to secure 100 million yuan in offshore funding. In December, Ant Digital facilitated 200 million yuan in financing for GCL Energy Technology by connecting its photovoltaic assets to its blockchain [1].

The process of tokenizing physical assets allows companies to bypass traditional financial intermediaries such as brokers and underwriters. Instead, they can issue digital tokens directly to investors, representing fractional ownership or future revenue streams from the assets. This approach reduces transaction costs and accelerates access to funding, while also potentially broadening the investor base to include retail participants who are typically excluded from infrastructure financing [2].

Looking ahead, Ant Digital is exploring the possibility of listing these tokens on decentralized exchanges offshore to enhance liquidity. However, such initiatives are contingent upon regulatory approvals. The company is already participating in a sandbox program led by the Hong Kong Monetary Authority (HKMA) aimed at promoting blockchain-based tokenization of real-world assets. Meanwhile, Hong Kong has introduced a new regulatory framework for stablecoin issuers, and the city’s de facto central bank plans to issue the first batch of approvals early in the following year [1].

Regulatory challenges remain a key concern, particularly in mainland China, where a blanket ban on crypto-related transactions is in place. Authorities have recently instructed local brokers and institutions to cease promoting stablecoins in an effort to prevent potential instability and fraudulent activities [2]. Despite this, Ant Digital’s broader revenue remains largely unaffected by its blockchain activities, as the unit primarily earns income through enterprise technology solutions in areas such as privacy and security [1].

Ant Digital’s progress in the tokenization space is part of a broader trend in the real-world asset (RWA) market, where on-chain value has surged to $28.4 billion. Ethereum remains the dominant blockchain for RWA tokenization, holding a 57% market share. As the sector continues to evolve, Ant Digital’s initiatives may play a pivotal role in shaping the future of infrastructure financing and digital asset adoption in Asia [2].

Source:

[1] Ant Digital is putting $8B in energy assets on the blockchain (https://cointelegraph.com/news/ant-digital-puts-8b-energy-assets-blockchain)

[2] Ant Digital plans to tokenize over $8 billion in energy assets (https://www.theblock.co/post/369959/ant-group-tokenize-energy-assets)