Circles USDC aims for China breakthrough with Ant Group alliance

Circle, the issuer of the USDC stablecoin, is reportedly exploring a partnership with Ant Group to extend its presence into China, according to a July 10 report by Bloomberg.

Sources familiar with the matter reportedly said that Ant Group, parent company of Alipay and one of Chinas largest financial technology firms, plans to integrate USDC into its blockchain infrastructure through its international arm, Ant International. If completed, the integration of USDC into the extremely popular Alipay payment platform could be viable, unlocking over a billion new users.

The move aligns with Ant Internationals broader objective to bring regulated digital assets, including stablecoins, central bank digital currencies (CBDCs), and tokenized deposits, onto its platform. USDC, a widely used stablecoin, could play a pivotal role in this strategy.

US compliance

However, the partnership reportedly hinges on Circles ability to meet US regulatory standards in the GENIUS Act.

Notably, Circle appears poised to comply with the GENIUS Acts regulations, which could give the company a first-mover advantage among US stablecoin issuers aiming to expand globally.

The GENIUS Act, supported by US officials including President Donald Trump and Treasury Secretary Scott Bessent, introduces robust compliance measures intended to safeguard users and enhance the stability of digital assets.

If successful, the partnership with Ant Group could provide Circle with a rare opportunity to enter China‘s tightly regulated financial market. Despite the Chinese government’s restrictions on crypto trading and mining, many users continue to engage with the digital asset space.

However, the Chinese governments stance on US dollar-backed assets remains a concern. Chinese financial experts have raised alarms about the growing influence of stablecoins, particularly US dollar-backed ones, in global financial systems. This could prompt further regulatory actions from China to protect its financial sovereignty.

Challenging Tethers USDT

Meanwhile, a partnership with Ant Group would bolster Circles bid to challenge Tethers USDT. Tether holds the dominant market position with a capitalization nearing $160 billion.

USDC, by comparison, has a market cap of around $62 billion. However, it is actively building momentum through partnerships with major exchanges, including Binance and most recently, OKX.

Circle noted that demand for USDC continues to grow among businesses and individuals seeking reliable, internet-native money. The company believes that its strategic exchange partnerships will help extend USDC access into emerging markets where US dollar liquidity remains constrained.