As the issuer of USD Coin (USDC), Circle (CRCL) is gaining momentum with its initial public offering (IPO), with interest in both its stablecoin and stock growing significantly.
In a notable development, reports from Bloomberg reveal that Ant Group Co., backed by Jack Ma, is collaborating with Circle to integrate USDC into its blockchain platform, pending compliance with US regulations.
Ant International To Integrate Circle’s Stablecoin
Ant International, the global arm of Ant Group, is reportedly planning to adopt Circle’s stablecoin once it secures the necessary approvals. While the timeline for this integration remains uncertain, the partnership underscores Ant’s ambition to enhance its blockchain capabilities, particularly in regulated cryptocurrencies.
The increasing acceptance of stablecoins has been bolstered by recent legislative movements, including the US Senate’s passage of the GENIUS Act in June, aimed to provide a new regulatory framework for dollar-pegged cryptocurrencies.
Circle has emerged as a key player in this evolving landscape, being one of the few publicly traded firms to issue its own stablecoin. Earlier this year, the company announced plans to launch a payments network aimed at facilitating cross-border transactions for financial institutions using its tokens.
On the market front, Circle’s shares have experienced remarkable growth, soaring over 500% since the company went public, with recent trading reflecting a 4.4% increase to approximately $209.
Ant Group Expands Blockchain Platform
Ant Group has been navigating a challenging regulatory environment since its record initial public offering was halted in 2020, which affected its lucrative online lending segment.
In response, Ant International has repositioned itself by establishing an independent board, paving the way for a potential spin-off and IPO. Analysts estimate that if this unit were to list in Hong Kong, it could achieve a valuation between $8 billion and $24 billion.
The growth potential of Ant’s treasury business is substantial, driven by the volume of transactions processed for its affiliate, Alibaba Group Holding Ltd., as well as external clients.
Ant’s blockchain platform currently supports a variety of tokenized assets from banks and institutions globally, with partnerships established with over ten major banks, including HSBC, BNP Paribas, JPMorgan Chase, and Standard Chartered.
As the cryptocurrency landscape matures, more companies are entering the space, including financial giants. Notably, PayPal’s recent launch of a stablecoin marks a significant move from a major financial institution, while retail giants like Walmart and Amazon are also contemplating the introduction of their own stablecoins.
With approximately $250 billion in circulation as of June, stablecoins are essential for market function, prompting regulators worldwide to establish frameworks aimed at mitigating risks associated with stablecoin crashes and potential misuse.
Further showcasing the renewed interest in the broader cryptocurrency market, Bitcoin (BTC) has reached a new all-time high above the $113,000 mark, entering into a new price discovery phase.
Featured image from DALL-E, chart from TradingView.com