Circle Makes Power Play: Alipay Integration Targets China’s Crypto Market Amid Ant Group Rumors
USDC issuer Circle is making a calculated bet on China's digital payments juggernaut—and Wall Street's watching.
The stablecoin giant is reportedly in talks to integrate with Ant Group's Alipay, a move that could crack open the world's second-largest economy for crypto adoption. While Beijing maintains its crypto trading ban, Circle appears to be threading the needle through payments infrastructure.
Why it matters: With 1.3 billion Alipay users, this could be crypto's backdoor into Chinese wallets. The partnership—still unconfirmed—would mark a rare détente between US crypto firms and China's tightly controlled financial ecosystem.
Market chess: Circle's play comes as Tether dominates offshore yuan trading. By potentially aligning with Ant (which famously had its $37B IPO axed by regulators), Circle's betting that stablecoins matter more than politics when trillions in commerce are at stake.
The cynical take: Nothing unites American crypto firms and Chinese tech giants quite like the shared dream of bypassing banking regulators.
US compliance
However, the partnership reportedly hinges on Circle’s ability to meet US regulatory standards in the GENIUS Act.
Notably, Circle appears poised to comply with the GENIUS Act’s 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 government’s 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 Tether’s USDT
Meanwhile, a partnership with Ant Group would bolster Circle’s bid to challenge Tether’s 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.
