Ant Group, backed by Jack Ma, is partnering with Circle to integrate USDC, a leading stablecoin, onto its blockchain platform, signaling a strategic move towards regulated digital assets and cross-border payments.

This partnership aims to enhance Ant's global payment capabilities, with the company's international unit, which generated nearly $3 billion in 2024, being prepared for a potential spinoff and IPO valued between $8 billion and $24 billion.

Ant processed over $1 trillion in global transactions last year, with about one-third on its blockchain, and plans to seek stablecoin licenses in Hong Kong, Singapore, and Luxembourg to meet emerging regulatory standards.

Following the announcement, Circle's shares rose by nearly 3.8% in pre-market trading, reflecting investor optimism about the partnership.

If successful, this collaboration could give Circle a unique foothold in China's regulated financial market, despite existing restrictions on crypto trading and mining.

The integration will proceed once USDC passes U.S. compliance requirements, with no specific timeline announced, but the partnership has already positively impacted Circle's stock.

Circle CEO Jeremy Allaire envisions stablecoins attracting developers similarly to the iPhone, emphasizing their high utility as a form of money and a key part of future digital finance.

Circle's focus on regulation aligns with a broader industry trend favoring compliance to access new markets and avoid scrutiny faced by competitors like Tether.

The company's blockchain supports tokenized assets from over ten global banks, including HSBC, BNP Paribas, JPMorgan Chase, and Standard Chartered, and has collaborated with China's PBOC on the digital yuan.

This partnership could bolster Circle's position against market leader Tether, which currently has a market cap of approximately $160 billion compared to USDC's $62 billion.

Circle is also seeking to establish the First National Digital Currency Bank to manage USDC reserves and focus on digital money management.

Circle has been expanding its global footprint through partnerships with major exchanges like OKX and Coinbase, aiming to grow USDC's presence in regulated markets, especially in Asia.