Ant International and UBS Team on Blockchain-Based Tokenized Deposits
News Summary
Digital payments firm Ant International and banking giant UBS have announced a blockchain-centered partnership. The collaboration will explore the use of blockchain-based tokenized deposits to support Ant International’s global payments settlement and liquidity management, utilizing UBS Digital Cash, a blockchain payment platform launched by UBS in November 2024. UBS executives stated that this partnership builds on the momentum of their Digital Cash pilot, aiming to combine expertise in digital assets with Ant's blockchain technology to deliver real-time, multi-currency payment solutions that enhance transparency and efficiency. The companies will also explore joint innovations in tokenized deposits using Ant's blockchain-based treasury management platform, Whale. According to the release, the connected solution will enable real-time, multi-currency fund flows between Ant International’s entities transparently, unconstrained by traditional payment cut-off times, thereby improving global liquidity management. Separately, a recent PYMNTS report suggests a “narrow” future for blockchain-based payments, with successful applications typically being domain-specific and integrated into existing workflows. However, Visa executive Mark Nelsen believes the technology is too efficient and suitable for this type of deployment.
Background
In 2025, the global financial industry continues to focus on blockchain technology's potential to enhance efficiency and transparency, yet its practical applications largely remain within specific, closed ecosystems, rather than broader decentralized finance (DeFi) or cryptocurrency realms. UBS, a leading global financial services firm, launched its "UBS Digital Cash" platform in November 2024, marking a significant step in its digital asset and blockchain applications, aiming to leverage its expertise for cross-border payments. Ant International, a digital payments company under Alibaba Group, manages Alipay's global operations and possesses extensive payment networks and technological capabilities worldwide. As global enterprises increasingly demand more efficient and cost-effective solutions for cross-border transactions and treasury management, blockchain technology's "narrow and specific" applications in inter-institutional B2B payments, treasury management, and supply chain finance are gaining traction. This collaboration combines the strengths of two financial and technology giants to realize the commercial value of blockchain technology in institutional-grade applications.
In-Depth AI Insights
What are the strategic implications for Ant International and UBS beyond merely enhancing payment efficiency? - For Ant International, this partnership with UBS is a critical step in deepening its global institutional financial services footprint. It not only boosts its credibility and technological prowess in B2B payment and liquidity management solutions but also potentially lays the groundwork for its future expansion into broader digital financial infrastructure services. This positions it more favorably in the increasingly competitive global payments landscape, especially as the Trump administration remains wary of Chinese tech firms, where collaboration with international financial giants lends legitimacy and stability to its internationalization efforts. - For UBS, collaborating with Ant International allows it to rapidly scale its early investments in digital assets (like UBS Digital Cash) and enhance its competitiveness in cross-border payments and wealth management across Asia and globally. This helps UBS attract more institutional clients seeking advanced, efficient fund management solutions and maintains its image as an innovation leader in an era where traditional banking models face digital disruption. The partnership also provides valuable real-world experience and potential new revenue streams for its future development in digital currencies and tokenized assets. How does this partnership validate or diverge from the view of a "narrow future for blockchain-based payments"? - Validates "Narrow Utility": This collaboration explicitly supports the idea that blockchain thrives in specific, inter-institutional applications. It focuses on internal treasury management, inter-entity fund flows, and cross-border payment settlements, which are "closed-loop" or "semi-closed-loop" systems—precisely the "domain-specific" and "integrated into existing workflows" success patterns mentioned in the report. - Avoids Speculation: The case does not involve public chains, decentralized finance, or volatile crypto assets. Instead, it applies blockchain technology to enhance the efficiency and transparency of existing financial processes, contrasting with many early "disruptive" narratives around blockchain and emphasizing pragmatism over speculation. - Pragmatic Institutional Adoption: This indicates that large institutions are adopting blockchain technology in a cautious, incremental manner, first experimenting and deploying in areas where clear efficiencies and cost savings can be demonstrated, rather than undertaking a complete overhaul of their infrastructure. What broader investment signals does this partnership send about the future intersection of traditional finance and blockchain? - Institutional Blockchain Adoption is Pragmatic, Not Revolutionary: Investors should recognize that large financial institutions' adoption of blockchain technology is highly selective and pragmatic. They are more focused on leveraging blockchain to solve specific pain points (e.g., efficiency, transparency, and cost of cross-border payments) rather than pursuing decentralization or disrupting existing systems. This implies that blockchain solutions based on efficiency improvements and cost savings will have more investment value than projects based on pure technological "innovation" but lacking clear business models. - Upgrade, Not Replacement, of Traditional Financial Infrastructure: This partnership suggests that blockchain is increasingly viewed as a powerful complement and upgrade tool for existing financial infrastructure, rather than a complete replacement. Technology service providers that can help existing financial giants effectively integrate blockchain technology and improve their core business efficiency will have clearer growth paths than "disruptors" attempting to completely replace traditional financial institutions. - B2B and Institutional Applications are Early Key Growth Drivers: For investors focusing on the blockchain space, institutional-grade applications such as B2B payments, corporate treasury management, supply chain finance, and specific trade finance scenarios will be the primary drivers of significant economic value in the real world in the coming years, rather than consumer-oriented cryptocurrency speculation.