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China’s Payment Giant Ant Group Files Crypto Trademarks in Hong Kong

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Ant Group, the fintech powerhouse behind Alipay, has filed emblems in Hong Kong this yr for digital property, stablecoins, and blockchain, together with “ANTCOIN.”

This, as many have speculated, is a sign to potential growth into Web3 regardless of Beijing’s recent regulatory warnings that pressured the corporate to pause its stablecoin issuance plans.

The trademark functions come as Chinese expertise corporations race to safe mental property in the digital asset area, even with tightening regulatory oversight.

Hong Kong Stablecoin Ambitions in Limbo

Ant Group’s trademark strikes observe a dramatic reversal in its stablecoin technique earlier this yr.

In June, the company announced plans to apply for stablecoin licenses in Hong Kong, Singapore, and Luxembourg as soon as Hong Kong’s new regulatory framework took impact in August.

JD.com equally pursued offshore yuan-oriented stablecoins by Hong Kong’s pilot program for fiat-backed tokens.

However, officers on the People’s Bank of China and the Cyberspace Administration of China instructed each corporations to pause or abandon their stablecoin initiatives by mid-October.

Regulators expressed concern that enormous tech corporations issuing currency-like tokens may undermine the central bank’s monetary authority, insisting that the appropriate to situation cash should stay completely with the state, not non-public firms.

Former PBoC governor Zhou Xiaochuan bolstered the cautious stance at a closed-door discussion board in late August, warning that “stablecoins may simply turn out to be automobiles for hypothesis or fraud,” whereas questioning their worth for on a regular basis retail funds.

Blockchain Becomes Cornerstone of International Strategy

Despite regulatory setbacks at house, Ant has aggressively expanded its blockchain infrastructure globally.

The firm’s Whale blockchain processed roughly one-third of the over $1 trillion in transactions dealt with by its international funds platform final yr.

In July, Ant partnered with Circle Financial to integrate USDC onto its blockchain platform, aiming to boost cross-border cost effectivity for its service provider community.

Ant Digital, the corporate’s blockchain arm, has pioneered the tokenization of real-world assets in China’s renewable energy sector.

The unit has linked over 60 billion yuan price of energy-related property to AntChain, serving to firms like Longshine Technology Group and GCL Energy Technology elevate lots of of thousands and thousands of yuan by providing digital tokens representing fractional possession in charging stations and photo voltaic installations.

Executives are actually contemplating extending this method to offshore exchanges to create liquidity for the tokens, pending regulatory clearance.

The firm’s abroad arm reported near $3 billion in income in 2024, posting income for 2 consecutive years and establishing an impartial board to arrange for a possible spin-off and itemizing.

Digital Innovation and Regulatory Reality

Ant’s trademark filings recommend the corporate is hedging its bets, enjoying inside the guidelines and outdoors them.

The firm has additionally launched consumer-facing blockchain functions.

One of them is Topnod, a digital artwork platform the place 4,088 blockchain-verified artworks priced between 8 and 28 yuan have been sold within three hours of launch in August.

Security considerations stay a important problem for stablecoin adoption at scale.

“Unless we carry hack charges under 1%, stablecoins will stay unbankable, and we’ll be subsidizing cybercrime for many years,” says Mitchell Amador, CEO of blockchain safety supplier Immunefi, noting that losses at the moment account for 3.6–4% of whole worth locked in onchain finance.

Chainalysis reports $40 billion in stablecoin-related illicit exercise since 2022, displaying infrastructure vulnerabilities at the same time as legislative frameworks just like the GENIUS and CLARITY Acts present regulatory pathways.

China's Payment Giant Ant Group Files Crypto Trademarks in Hong Kong
Source: Chainalysis

Yield is one other main regulatory concern, which stays the most important worry for banks that stablecoins would possibly cut back individuals’s reliance on them.

Speaking with cryptonews, Colin Butler, Co-Founder of stablecoin DAT firm Mega Matrix, explains how yield dynamics have shifted post-regulation.

He defined that “the GENIUS Act created an necessary regulatory framework by prohibiting stablecoin issuers from straight paying yield to holders. It definitely hasn’t eradicated yield alternatives, however shifted the place and the way that yield is generated and distributed.”

He notes that crypto exchanges and DeFi platforms now supply aggressive yields of 4-5% or greater by promotional rewards and lending mechanisms.

“When shoppers can entry 4-5% yields on stablecoin deposits versus near-zero on conventional financial savings accounts, banks might want to both enhance their choices or settle for deposit migration,” he famous.

Notably, Hong Kong’s stablecoin licensing regime has attracted international curiosity, although authorities have cautioned that just a few licenses can be permitted initially after rigorous scrutiny.

Ant’s trademark functions maintain the door open for participation ought to regulatory winds shift, whereas the corporate continues constructing its international blockchain infrastructure.

The submit China’s Payment Giant Ant Group Files Crypto Trademarks in Hong Kong appeared first on Cryptonews.

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