While China remains firm in its ban on cryptocurrency transactions, the country continues to embrace blockchain technology as a foundation for innovation in areas like digital identity, supply chain management, and cross-border payments.
Alibaba’s fintech arm, Ant Group, is signaling its continued commitment to blockchain technology with a significant capital injection into two of its blockchain subsidiaries. The strategic move comes despite China’s ongoing ban on cryptocurrency transactions, showing the country’s distinction between crypto and blockchain technology.
Ant Blockchain Technology recently increased its registered capital from 100 million yuan ($13.9 million) to a whopping 1.5 billion yuan ($206.4 million). Founded in December 2018, this subsidiary focuses on software development, hardware retail, and information technology services related to the blockchain.
This capital increase isn’t an exception. Another subsidiary, Ant Chain (Shanghai) Digital Technology Co., also saw a significant increase in its registered capital, rising from 100 million yuan to 2.1 billion yuan ($288.9 million).
Ant Group’s Blockchain Push
While China remains firm in its ban on cryptocurrency transactions, the country continues to embrace blockchain technology as a foundation for innovation in areas like digital identity, supply chain management, and cross-border payments. This stance opens up significant opportunities for domestic tech giants like Ant Group and Tencent to develop their own blockchain solutions.
Ant Group’s commitment to blockchain extends beyond capital injections. In July 2020, the company launched its dedicated blockchain brand Ant Chain. This brand focuses on providing enterprise-grade blockchain solutions for various industries.
Further expanding its global footprint, Ant Digital Technologies debuted its overseas blockchain brand ZAN in September 2023. ZAN aims to cater to the specific needs of international markets, offering tailored blockchain solutions for global businesses.
Ant Digital’s Collaborative Expansion
Ant Digital Technologies’ involvement doesn’t stop at their own brands. The company actively participates in fostering the broader blockchain ecosystem. In May 2024, Ant Digital Technologies joined the blockchain industry community established by Hong Kong. This collaborative effort aims to develop solutions for wholesale central bank digital currency (CBDC) and tokenization.
By strategically increasing its subsidiaries’ capital and actively engaging in the blockchain landscape, Ant Group is positioning itself as the leader in China’s burgeoning blockchain industry. This move shows the potential of blockchain technology to revolutionize various sectors within the country and potentially influence the global landscape.
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