Ant Group’s enterprise technology arm, Ant Digital Technologies, has been making quiet progress in connecting large-scale energy assets to its blockchain platform, AntChain. According to individuals familiar with the matter, the unit has linked more than 60 billion yuan (about $8.4 billion) worth of power infrastructure and is monitoring the output of around 15 million renewable energy devices, including solar panels and wind turbines. The data from these assets is being uploaded to AntChain, laying the groundwork for a broader tokenization strategy.
The initiative has already moved beyond data tracking, with tokens tied to these energy assets beginning to circulate. Ant Digital has completed financing for three clean energy projects using this method, raising nearly 300 million yuan in total for the operators involved. This model is part of a growing global trend to tokenize real-world assets, creating more efficient and cost-effective ways to fund infrastructure.
Shaping a new financing model
Tokenization, while still in its early stages, has been viewed by financial experts as a potential breakthrough in capital markets. Academics have pointed out that tokenized assets can increase trust and efficiency by offering investors a verifiable link to underlying collateral. Once digitized, such assets can be transacted more quickly and at lower cost compared to traditional methods.
People familiar with Ant Digital’s strategy have indicated that one option under consideration is listing these asset-backed tokens on offshore decentralized exchanges. This could improve liquidity, although the plan remains under discussion and would depend heavily on regulatory approval.
Ant Digital has already demonstrated the viability of this model. In August last year, it secured 100 million yuan in financing from offshore banks for Shenzhen-listed Longshine Technology Group by linking over 9,000 of its charging units to AntChain. Later in December, the company raised more than 200 million yuan from offshore investors for GCL Energy Technology by tokenizing the firm’s photovoltaic infrastructure.
Cutting intermediaries from capital raising
The tokenization of renewable energy assets allows companies to bypass traditional intermediaries such as brokers, loan officers, and asset managers. Instead, they can issue digital tokens directly to investors, providing fractional ownership or a share of future revenues. This direct model lowers costs, accelerates funding, and broadens access to new classes of investors, including retail participants who typically cannot engage in infrastructure financing.
Ant Digital has also been strengthening its ecosystem partnerships. Recently, it invested in Pharos Network Technology, a public blockchain led by a former Ant employee. In addition, it signed a strategic agreement with Yunfeng Financial Group in Hong Kong to collaborate on real-world asset tokenization using Pharos’s platform.
Navigating regulatory boundaries
Much of Ant Digital’s progress hinges on Hong Kong’s evolving regulatory landscape. The city introduced new rules in August for stablecoin issuers, with oversight now in the hands of the Hong Kong Monetary Authority (HKMA). The HKMA has signaled plans to grant the first licenses early next year. Ant Digital is participating in an HKMA-led sandbox program designed to promote blockchain applications for asset tokenization.
However, challenges remain on the mainland, where cryptocurrency-related transactions are banned outright. Authorities in China have recently directed brokers and other organizations to stop promoting stablecoins, citing risks of misuse and fraud. This cautious environment means Ant Digital must balance innovation with compliance across jurisdictions.
Diversified business focus
Despite its blockchain initiatives, Ant Digital still generates most of its revenue from selling enterprise technology solutions in areas such as privacy and security. Tokenization and blockchain-related activities remain a relatively small part of its overall business.
Other Ant Group divisions are also experimenting with blockchain applications. Ant International has been using similar infrastructure for cross-border corporate payments and is actively seeking licenses linked to stablecoin issuance.
For the broader group, the financial results remain robust. Ant Group reported profits of approximately $654.5 million for the three months ending March 31. The Hangzhou-based company continues to operate Alipay, one of China’s most widely used financial services platforms, while reshaping its business strategy in response to regulatory and market changes.