Ant Digital Technologies, a subsidiary of China’s fintech giant Ant Group, has set its sights on becoming a leading technology provider in the global Web3 industry through its new venture, Zan. According to the company’s CEO, Zan is strategically positioned to capitalize on Hong Kong’s supportive environment for the sector, aiming to play a crucial role in the development of Web3, similar to how companies like Google and Microsoft have become indispensable in the Web 2.0 era.
Zan was initiated by Ant in September of the previous year, with a clear goal of establishing itself as a critical technology provider at the heart of the emerging Web3 landscape. The CEO of Zan, Cobe Zhang Chenguang, explained in a recent interview that the company intends to bring the extensive technology services that Ant Group has developed over the years, particularly in areas such as blockchain and financial compliance, to Web3 developers worldwide. The goal is to become a central figure in the Web3 industry by offering a comprehensive suite of technical solutions, including node provider services and know-your-customer (KYC) verification. Zan aims to capture the largest market share in the Asia-Pacific region within the next two to three years.
Ant Group, known for its affiliation with the Chinese e-commerce giant Alibaba Group Holding, operates AntChain, which is currently the largest enterprise-facing blockchain platform in China. In 2023, AntChain held a 26.5 percent share of China’s blockchain-as-a-service market, making it the leading provider in the country, according to a report by research firm IDC. Its closest competitor, Tencent Holdings, accounted for 18 percent of the market. Despite its dominance in mainland China, Ant recognized the need to establish Zan in Hong Kong to further expand its blockchain services on a global scale.
Zhang highlighted that setting up Zan in Hong Kong provides the company with greater freedom to explore innovative technologies due to the city’s supportive policy environment. This strategic move allows Ant Digital to pursue more “forward-looking” initiatives that may not be feasible in the relatively conservative environment of mainland China. The Chinese government has maintained a cautious stance towards certain Web3 innovations, particularly cryptocurrencies, which are often viewed as a disruptive force to economic and financial stability and a potential breeding ground for criminal activity. In contrast, Hong Kong has been actively working to position itself as a hub for virtual assets, attracting businesses to the city with tacit approval from Beijing.
This trend is further evidenced by Alibaba’s domestic e-commerce rival JD.com, which also established a subsidiary in Hong Kong earlier this year. Named Jingdong Coinlink, the subsidiary participated in the Hong Kong Monetary Authority (HKMA)’s stablecoin sandbox, which launched in July. Similarly, Ant Digital Technologies has joined the HKMA’s wholesale central bank digital currency sandbox, announced recently. This initiative explores the tokenization of various scenarios, including electric vehicle charging stations and electronic bills of lading used in the global shipping industry.
Zhang noted that the trading of tokenized assets and funds on the blockchain operates on a similar technical model to that of public blockchains today. However, this trading occurs in a more regulated and secure environment, which mitigates risks such as the loss of funds due to private key mishandling. He emphasized that this approach makes blockchain technology more accessible and user-friendly for the general public, which is essential for broader adoption.
In conclusion, Ant Digital’s venture Zan is positioned to become a significant player in the global Web3 industry by leveraging Hong Kong’s supportive environment. With its extensive experience in blockchain and financial compliance, Zan aims to lead in providing innovative solutions for Web3 developers. The company’s participation in Hong Kong’s forward-looking initiatives further solidifies its commitment to advancing blockchain technology in a regulated and secure manner. As the global Web3 landscape continues to evolve, Zan is poised to play a pivotal role in shaping the future of decentralized technologies.
