A significant development in the realm of fintech is underway as a unit of Chinese conglomerate Ant Group embarks on an ambitious project to tokenize energy infrastructure valued at over $8 billion. Ant Digital Technologies, the enterprise solutions division of Ant Group, is currently engaged in the tokenization of approximately 60 billion yuan, equivalent to $8.4 billion, of power infrastructure on its proprietary blockchain, AntChain. This initiative has reportedly been detailed in a Bloomberg article citing sources familiar with the venture.
The company has been actively monitoring power production and outages from a network of 15 million energy devices, which includes wind turbines and solar panels scattered throughout China. The data captured from these devices is being systematically uploaded to the AntChain blockchain, providing vital insights into energy infrastructure performance.
To date, Ant Digital has successfully completed funding for three clean energy projects through the means of asset tokenization, raising a total of about 300 million yuan ($42 million). The forthcoming phase of this project involves the issuance of tokens associated with these assets. One avenue being considered for expansion includes placing these tokens on decentralized offshore exchanges, which could enhance liquidity for the assets, although such plans would require regulatory approval.
In previous ventures, Ant Digital raised 100 million yuan ($14 million) in August 2024 for Longshine Technology Group, linking approximately 9,000 electric charging units to the AntChain platform. Additionally, in December, the company secured over 200 million yuan ($28 million) for GCL Energy Technology by connecting photovoltaic assets to its blockchain, demonstrating its commitment to facilitating the financing of renewable energy initiatives through innovative financial solutions.
Asset tokenization not only allows companies to circumvent traditional financial intermediaries by directly issuing digital tokens to investors, but it also offers numerous advantages. Key benefits include the elimination of middlemen such as loan officers and underwriters, thereby reducing costs and accelerating access to funding. Moreover, this method broadens investment opportunities, making them more accessible to retail investors typically excluded from infrastructure financing.
In parallel, Ant Group has reportedly set its sights on developing stablecoin capabilities. In July, reports emerged that the conglomerate was collaborating with Circle, a stablecoin issuer, to incorporate USDC into its blockchain infrastructure. Concurrently, Ant International, the global division of Ant Group, has been utilizing its infrastructure for cross-border corporate payments and seeking regulatory licenses related to stablecoin operations.
Despite being relatively nascent, the sector of real-world asset (RWA) tokenization is experiencing rapid growth, with its on-chain value nearly doubling since the start of the year. The current value has reached a record high of $28.4 billion, according to data from RWA.xyz. This total is comprised largely of tokenized private credit and tokenized U.S. Treasuries, with Ethereum securing a dominant 57% market share in the RWA tokenization space.
The rapid surge in RWA on-chain value suggests that interest and investment in asset tokenization are on the rise, potentially reshaping the landscape of finance as companies explore innovative ways to utilize blockchain technology in traditional sectors.
