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Ant Chairman Promotes 'Tokenised Money' for Settlement, Silent on Stablecoin Strategy

By Newby

Ant Group’s Blockchain Advancements Highlight New Era of Financial Services

Ant Group chairman Eric Jing Xiandong recently highlighted the company’s progress in tokenisation and praised the growing role of blockchain in financial services during Hong Kong Fintech Week. However, he did not address the company's stalled stablecoin initiative as regulators tighten their grip on speculative activities.

Jing spoke about how Ant has successfully used tokenised bank deposits to achieve cross-bank real-time settlement this year through the Hong Kong government’s Project Ensemble. He made these remarks during a panel discussion at the city’s largest fintech conference, where he also shared insights with the Hong Kong government’s Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu.

During the same panel, Jing mentioned that last year, Ant achieved real-time settlement across different branches of a global bank — though he did not name the institution — as part of a sandbox initiative. This achievement, according to Jing, has significantly boosted confidence in the potential of tokenised deposits and money to enable real-time global settlement.

Project Ensemble was launched in August of last year with the goal of exploring various use cases for tokenisation. Tokenisation refers to the process of creating digital representations of traditional assets on a blockchain, enabling faster and more cost-effective transactions. Ant Digital Technologies, a unit of Ant Group that began operating independently last year, is one of the participants in the sandbox.

Ant Group, which owns the mobile payment service Alipay, is among major mainland Chinese firms seeking to enter Hong Kong’s digital-asset market. Ant Digital Technologies operates Jovay, an Ethereum Layer-2 blockchain designed for real-world asset tokenisation. In June, Ant Group announced plans to apply for a stablecoin licence in Hong Kong.

However, during the panel discussion, Jing did not mention the company’s stablecoin initiative, which has faced delays due to the Chinese government advising mainland firms to pause certain digital-asset activities in the city.

Stablecoins were intended to be tools for facilitating cross-border transactions and real-world economic activity, rather than for investment or speculation. Financial Secretary Paul Chan Mo-po emphasized this point in a speech on Monday, stating that stablecoin licence approvals would only go to applicants who demonstrate genuine use cases backed by sustainable and robust business models.

As of the end of September, the Hong Kong Monetary Authority had received stablecoin licence applications from 36 institutions, according to the city’s de facto central bank.

Jing, who has been Ant Group chairman since 2018, also noted that blockchain-based transactions have become more mainstream with increased regulations and institutional involvement. He pointed out that blockchain transactions are shifting from speculation to “value exchange.”

At last year’s Fintech Week, Jing also praised the value that tokenisation could bring to cross-border payments.

Key Developments in Ant Group’s Blockchain Strategy

  • Tokenisation Progress: Ant has successfully implemented tokenised bank deposits for cross-bank real-time settlement through Project Ensemble.
  • Global Settlement Achievements: The company achieved real-time settlement across different branches of a global bank as part of a sandbox initiative.
  • Blockchain Adoption: Jing highlighted the shift from speculative blockchain transactions to value-based exchanges, driven by increased regulation and institutional participation.
  • Jovay Blockchain: Ant Digital Technologies operates Jovay, an Ethereum Layer-2 blockchain focused on real-world asset tokenisation.
  • Stablecoin Initiative: Despite plans to apply for a stablecoin licence in Hong Kong, Ant Group has not publicly discussed its stablecoin pursuit amid regulatory caution.

With the ongoing evolution of blockchain technology and increasing regulatory oversight, Ant Group continues to explore new opportunities in the digital financial landscape. As Hong Kong positions itself as a hub for digital assets, companies like Ant Group are poised to play a significant role in shaping the future of finance.