Ant Group and Circle Team Up to Expand USDC to AntChain

The collaboration is a big move when it comes to aligning global fintech ecosystems around standardized digital value and comes during a time of improving US regulatory clarity. Circle's influence is growing at a fast rate thanks to new partnerships with OKX, Coinbase Derivatives, and Nodal Clear, and the increasing acceptance of USDC in both institutional and retail financial systems.

Meanwhile, Ripple CEO Brad Garlinghouse predicted explosive growth for the stablecoin market by suggesting it could expand to $1–2 trillion in the coming years. Ripple's own stablecoin, RLUSD, quickly reached a $500 million market cap. This was bolstered by a strong regulatory push including the GENIUS Act and new banking license applications. With both Ant Group and Ripple making aggressive plays in the stablecoin space and institutions like BNY Mellon and Transak joining in, the sector is gaining impressive momentum globally.

Ant Group Eyes USDC Integration

Jack Ma-backed Ant Group is reportedly working with USDC issuer Circle to integrate the stablecoin into its proprietary blockchain. This is according to a Bloomberg report that refers to anonymous sources. While the timeline for this integration is still uncertain, the partnership is expected to proceed once USDC achieves compliance with US regulations. 

Ant Group is best known for operating the Alipay super-app and processing over $1 trillion in annual payments, and has been very active in the blockchain space. Through its AntChain network, the company offers services in treasury operations, cross-border settlements, and asset tokenization. Its interest in stablecoins is not new. Just  weeks earlier, Ant joined forces with JD.com to lobby the People’s Bank of China to approve yuan-backed stablecoins. Additionally, Ant International is reportedly preparing to apply for stablecoin issuer licenses in certain key Asian hubs like Singapore and Hong Kong.

The collaboration with Circle might be happening at a time when regulatory conditions for stablecoins in the US begin to clear. In mid-June, the US Senate passed the GENIUS Act, which is a bill that provides legal clarity for stablecoin issuance and management. Circle also applied to establish a national trust bank, which would oversee USDC reserves and support its regulated growth. Overall, these regulatory advancements are making it possible for the company to accelerate its global expansion strategy.

Circle’s momentum also accelerated after it announced earlier this week that it entered a  partnership with leading cryptocurrency exchange OKX to offer feeless conversions between USDC and US dollars, improving liquidity and usability. The company’s influence in the digital asset space is huge when considering its shares became the largest weighting in VanEck’s digital asset corporate index in late June. Additionally, Circle’s USDC stablecoin is now being accepted as eligible collateral in US futures markets after a partnership between Coinbase Derivatives and Nodal Clear.

As regulatory clarity improves and institutional interest in stablecoins intensifies, Circle CEO Jeremy Allaire is very confident in the future of the sector. He even recently compared the rise of stablecoins to the revolutionary impact of the iPhone, and called them “the highest utility form of money ever created.” The reported partnership between Ant Group and Circle is just the last big move in aligning global fintech ecosystems around a shared standard for digital value.

 Ripple Predicts $2T Stablecoin Market

Ripple CEO Brad Garlinghouse also recently expressed his strong optimism about the future of stablecoins by suggesting the market could grow nearly tenfold in the coming years. Speaking on CNBC’s “Squawk Box,” Garlinghouse explained that many in the industry believe stablecoins could reach a market capitalization of $1 to $2 trillion, up from the current $250 billion. 

Brad Garlinghouse speaking to CNBC

He placed a lot of emphasis on the quick growth of the sector and pointed out that Ripple entered the space later than others because it had already been using stablecoins in institutional payment flows. Garlinghouse believes Ripple's strong regulatory foundation and institutional focus position the company well to thrive as the market expands.

As part of its stablecoin strategy, Ripple recently named BNY Mellon as the custodian for its RLUSD dollar-pegged stablecoin. RLUSD was launched in late 2024, and already reached a $500 million market cap milestone. This rapid growth happened thanks to the momentum in the stablecoin space, with fintechs, banks, social networks, and major retailers launching their own digital currencies. 

Henrik Andersson, CIO of Apollo Capital, agrees with Garlinghouse’s views, and said the projected growth aligns with his firm’s forecasts. He pointed to the profitability of Tether as a case study for the sector’s potential and suggested that the GENIUS Act, which recently passed a Senate vote, could serve as a major catalyst by recognizing stablecoins as legal tender in the US.

Nick Ruck of LVRG Research also pointed out that the regulatory environment is becoming much more favorable. He referred to the GENIUS Act as well, and a more crypto-friendly SEC as drivers for accelerated adoption. 

Ripple, meanwhile, is doubling down on compliance efforts. The firm applied for a banking license with the Office of the Comptroller of the Currency and is seeking a Federal Reserve Master Account. Garlinghouse said these moves are part of Ripple’s strategy to bridge traditional finance and decentralized finance.

XRP's price action over the past 14 days (Source: CoinMarketCap)

In addition to its regulatory and product milestones, Ripple announced an integration with cryptocurrency payments provider Transak to expand the use of its stablecoin. Meanwhile, Ripple’s native cross-border payments token XRP managed to surge 14% this week and is now trading at a seven-week high of $2.56. The convergence of market growth, legislative support, and institutional involvement seems to be accelerating Ripple’s influence in the financial landscape.