Key Takeaways
- Since 2019, Ant International has integrated a range of tokenized deposit systems into its payment infrastructure.
- In 2024, over a third of Ant’s transactions were processed on-chain.
- UBS Cash is the latest tokenized deposit solution it has integrated.
Ant International has emerged as an important early adopter of tokenized deposits, partnering with various banks as they roll out their respective blockchain payment solutions.
Having already embraced solutions from HSBC, Standard Chartered, and DBS, the company’s latest partnership adds UBS Digital Cash to its growing arsenal of on-chain payment tools.
Ant International Embraces Tokenized Deposits
As the fintech-focused subsidiary of Alibaba owner Ant Group, Ant International oversees some of the most important payment systems in the world.
The firm began developing its own blockchain-based treasury and settlement platform, Whale, in 2019.
In 2024, more than a third of the firm’s transactions were processed on-chain through Whale, Ant claimed.
Using Whale as its orchestration layer, Ant has worked with major global banks to integrate a range of tokenized liabilities.
Having participated in the pilot for HSBC’s Tokenized Deposit Service (TDS), the company became the first corporate user of the platform when it went live in May.
More recently, Ant’s cross-border treasury management became the test case for HSBC’s first cross-bank deposit token transfer, sending HKD $3.8 million to a Standard Chartered account.
That same day, the Alipay operator inked a Memorandum of Understanding (MoU) with DBS Bank to collaborate on the further development of tokenized deposit technology.
Given Ant’s experience with HSBC, it could also integrate a new interoperability framework that DBS is developing with JPMorgan.
Promoting Interoperability
Interoperability is a top priority for Ant International, which is embedded in complex global supply chains and maintains relationships with dozens of banks around the world.
As part of the Monetary Authority of Singapore’s Project Guardian, the company contributed to a report in July calling for banks to adopt a “shared ledger infrastructure” for tokenized liabilities.
While the report didn’t propose rallying behind a single platform, it endorsed blockchain networks in general as a way to streamline global payments.
UBS Enters the Fray
With JPMorgan leading the way in USD tokenization and HSBC busy in Hong Kong, UBS has stepped up to champion the technology in Europe.
During a 2024 pilot, UBS Cash processed transactions including domestic Swiss payments and cross-border payments in USD, CHF, EUR, and CNY.
Per a Memorandum of Understanding announced on Sunday, Nov. 16, Ant International will explore integrating UBS’s tokenized deposit solution into its global settlement and liquidity management operations.
The two companies will also work together on a “connected solution” that equips Whale with real-time, multi-currency capabilities.
Between its various deposit token integrations and its stablecoin ambitions, Ant International is at the forefront of corporate blockchain adoption.
Building on its prior successes in the space, Ant Group now plans to integrate tokenized deposits into Alibaba. Leveraging JPMorgan’s blockchain platform, the firm is experimenting with tokenized USD and EUR for merchant payments, Alibaba President Kuo Zhang said recently.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
