The move aligns with Ant International’s broader objective to bring regulated digital assets, including stablecoins, central bank digital currencies (CBDCs), and tokenized deposits, onto its platform. USDC, a widely used stablecoin, could play a pivotal role in this strategy.
However, the partnership reportedly hinges on Circle’s ability to meet US regulatory standards in the GENIUS Act.
If successful, the partnership with Ant Group could provide Circle with a rare opportunity to enter China’s tightly regulated financial market. Despite the Chinese government’s restrictions on crypto trading and mining, many users continue to engage with the digital asset space.
However, the Chinese government’s stance on US dollar-backed assets remains a concern. Chinese financial experts have raised alarms about the growing influence of stablecoins, particularly US dollar-backed ones, in global financial systems. This could prompt further regulatory actions from China to protect its financial sovereignty.
Meanwhile, a partnership with Ant Group would bolster Circle’s bid to challenge Tether’s USDT. Tether holds the dominant market position with a capitalization nearing $160 billion.
Circle noted that demand for USDC continues to grow among businesses and individuals seeking reliable, internet-native money. The company believes that its strategic exchange partnerships will help extend USDC access into emerging markets where US dollar liquidity remains constrained.
