Ant Group, founded by Jack Ma and linked to Alibaba, successfully integrated the USDC stablecoin into its Alipay payment system, which was made possible by changes in US regulations.
Integration of USDC in Alipay
Ant Group added USDC to its payment systems. This decision was made possible by changes in US stablecoin regulations. The company manages over 1.6 billion Alipay accounts, processing more than $1 trillion annually. The use of its own blockchain for online transactions is complemented by the integration with USDC, making Ant Circle's largest corporate client outside the U.S.
Benefits for Alibaba Buyers and Sellers
With the change for buyers on AliExpress, payments can now be made using USDC, allowing avoidance of traditional banking fees and currency conversion markups. This contributes to lower prices for end consumers and accelerates payment receipt for sellers, improving order fulfillment and cash flow. Additionally, users in high-inflation countries can utilize USDC to preserve purchasing power.
Opportunities for Businesses and the Future of Alipay
The integration of USDC allows Alibaba partners, such as JPMorgan and Standard Chartered, to transact without delays. It also improves liquidity across Alibaba's supply chain. The transparency of USDC reduces counterparty risks and simplifies auditing. Importantly, regulatory clarity under the U.S. Genius Act ensured the security of user funds, paving the way for future upgrades, such as the tokenization of real assets and stock trading. The Alipay model attracts interest from international companies, like Elon Musk's X.
The integration of USDC into Alipay opens new opportunities for users and businesses, ensuring faster and cheaper transactions, which fosters Alibaba's globalization and improves financial services.
