Stablecoin Drama: Ant Group Clarifies — The Market Gets It Instantly!

TradingKey - According to a Bloomberg report, Ant Group was planning to introduce Circle’s USDC stablecoin on its blockchain platform, as part of its broader strategy to bring more regulated crypto assets into its international business. It was also said to be preparing for a stablecoin license application, with plans to submit it shortly after Hong Kong’s new stablecoin regulations take effect in August.

However, on July 10, Ant International responded swiftly, stating that the reports were “inaccurate,” and confirmed there are currently no concrete plans to introduce USDC. The clarification quickly rippled through the market — Circle’s stock, which had risen as much as 4.36% during the session, pared gains to close up just 1.11%, as investor expectations cooled.

[Intraday 1-minute chart of Circle and Alibaba, source: TradingKey]

As a result, Alibaba (BABA.US) closed up 2.71% on Thursday, outperforming the broader market amid improving investor sentiment. As the parent company of Ant Group and a major shareholder through indirect holdings, Alibaba’s capital structure is closely tied to its subsidiary.

At the time of writing, Alibaba’s Hong Kong-listed shares (9988.HK) were up 3%.

While this particular rumor has been clarified, Ant International’s ongoing moves in fintech and digital assets remain under market scrutiny. Whether or not it will push forward with stablecoin initiatives in the future will serve as a key indicator of its broader international strategy.