- Ant International partners with Circle to add USDC.
- The integration awaits U.S. compliance approval
- Deal could make Ant a top stablecoin player in Asia.
Ant International, the overseas division of China’s Ant Group, is preparing to integrate Circle’s USDC stablecoin into its blockchain platform. The partnership is still waiting for regulatory approval in the United States. It is included in the broader strategy of Ant to expand its international financial services and to facilitate cross-border payments in a more efficient and quicker way.
Ant International Targets Faster Cross-Border Payments with USDC
Bloomberg reports that the integration of the USDC offered by Ant Group will only be possible after the stablecoin satisfies all the compliance criteria in the United States. Although the precise timing remains unclear, the partnership will be a crucial milestone in Ant moving toward regulated fintech innovation. In 2020, the Chinese government ordered a crackdown on Ant Group and had to reorganize its operations, ultimately dropping its massive 37 billion-dollar IPO. Because of that, Ant Group shifted its strategy and began to pay more attention to expanding its business abroad.
Since this time, the global branch of the company, Ant International, has been striving to receive licenses in such important locations as Hong Kong, Singapore, and Luxembourg. Such licenses will enable Ant to work freely in the international markets without violating local regulations. Ant is adding USDC, one of the most credible dollar-backed stablecoins in the world, in the hope of making cross-border payments faster, cheaper, and more reliable. The move would put Ant in a good position in the rapidly expanding global digital finance sector.
In addition, major banks like JPMorgan and HSBC are already using Ant blockchain system. It assists them in tokenizing finance assets safely and effectively. Ant could further strengthen its networks by incorporating USDC into this system. As a fintech professional in Hong Kong noted, the ability to access a stable digital asset such as USDC will aid Ant in enhancing the flow of money across borders, particularly in markets that require transparent regulations and secure payments.
Circle and Ant Partnership to Reshape Asia Stablecoin Market
Meanwhile, Circle, the company behind USDC, is also expanding around the world. Besides working with Ant, Circle has partnered with OKX, which is among the largest crypto exchanges. This alliance will allow more than 60 million users of OKX to transfer between U.S. dollars and USDC effortlessly at no additional cost.
Besides, Circle intends to establish the credibility of its stablecoin by seeking permission to establish a national trust bank, First National Digital Currency Bank, N.A. If U.S. regulators approve the bank, Circle will directly manage USDC reserves. It will additionally engage in secure virtual property services for big investors. Interestingly, this new bank will not be an ordinary bank where it will be dealing with loans or savings accounts. Rather, it is going to concentrate on the management of digital money only.
Meanwhile, this partnership might be a significant change in Asia. Hong Kong recently imposed strict regulations on stablecoins such that they must be fully backed and must be registered and licensed. In case Ant is approved under these new rules, it would be among the first large firms in Asia to legally provide stablecoins. It is a good match to the larger mission of Ant to make blockchain payments faster and safer. Currently, the blockchain of Ant handles over a trillion dollars of transactions annually.
With regulations on digital finance becoming more transparent, the collaboration between Ant and Circle may assist in defining the development of digital money in Asia. They combined efforts to ensure that payment is faster and secure for all people in the modern interconnected world.