Increasing Efficiency in Global Payments through Innovation
Banking Circle’s genesis is on bringing modern banking solutions to a digitally charged generation of businesses and consumers. Technology is changing at a rapid pace, and as a modern bank, we work alongside our technology-first clients on the evolution of their products and offerings.
A year ago, we collaborated with Ant International to launch the Euro denominated tokenised deposit, a step forward in revolutionising Ant International’s cross-border treasury and liquidity management. Here is our reflection on the impact and opportunities it continues to unlock.
About Ant International
Ant International is the international business unit of Ant Group. It aims to be the most trusted and innovative digital partner to bring inclusive growth to all businesses, through its four main business pillars:
- Alipay+: A unified digital gateway for mobile payment and super apps
- Antom: A unified payment services for global merchants
- WorldFirst: A unified account service for global SMEs (WorldFirst)
- Embedded finance: Providing global liquidity management and SME credit tech solutions
As a global digitalisation and financial services provider, Ant International wanted to build a seamless, round the clock and instantaneous solution to enhance the efficiency of its treasury management solution.
Tokenised deposits facilitate seamless, round-the-clock, instantaneous treasury management solutions
“With the integration of our technology and tokenised deposits, our treasury platform has demonstrated strong consistency and reliability in transactions. This success gives us the confidence to further expand and build up its capabilities.”
— Kelvin Li, Head of Platform Tech at Ant International
Tokenised deposits are blockchain representations of traditional bank deposits. They are backed by fiat deposits in banks – like Banking Circle and are backed by fiat deposits in those banks. Banking Circle’s infrastructure supports Ant Group’s tokenised deposits to run on their private blockchain.
As with any emerging financial technology, institutions face challenges related to scalability, reliability, and uptime, with a strong emphasis on ensuring platform stability. For Ant International, ensuring the security of tokenised deposits was central to this journey.
To ensure security and regulatory alignment, Ant International actively participates in global regulatory projects, such as Project Guardian in Singapore and Project Ensemble in Hong Kong.
Reflecting on it now, Kelvin Li commented: “With the integration of our technology and use of tokenised deposits, our treasury platform has demonstrated strong consistency and reliability in transactions. This success gives us the confidence to further expand and build up its capabilities.”
The immediate benefits to Ant International were:
- 24/7 instant settlement
- Real-time fund tracking and instant reconciliation
- Reduced transaction fees and operational costs
“To date, a significant portion of our treasury activities have been transitioned to a blockchain-driven tokenised deposit treasury solution. This shift has delivered greater transparency, efficiency, and security, reinforcing the potential of tokenised deposits.”
— Kelvin Li, Head of Platform Tech at Ant International
Now, a year on – Ant International is enhancing utility with the introduction of privacy-preserving token in a permissioned blockchain ecosystem
Blockchain technology thrives on transparency. It allows multiple participants to share information on-chain. Privacy then, becomes a critical consideration.
In 2024, Ant International introduced a feature which enable privacy in a permissioned blockchain ecosystem utilising ZK proof. As this is done in a permissioned blockchain ecosystem, there are none of the adverse regulatory issues associated with masking of transactions as in a permissionless ecosystem. This feature ensures that both the token’s amount and the beneficiary’s identity remain confidential – all while leveraging on the efficiency of blockchain technology.
“By embedding privacy at the core of tokenised transactions, Ant International and Banking Circle are enabling secure digital payments that meet the needs of global enterprises. For businesses operating in regions with strict data protection laws, such as Europe’s GDPR, this feature is not only valuable but also meaningful for customers.”
— Cindy Liu, Sales and AM Asia
A Year of Progress, A Future of Possibilities
Innovation in payments does not happen in isolation. To truly transform global financial infrastructure, collaboration is essential. Ant International and Banking Circle continue to work closely together to drive meaningful change in treasury management while exploring its impact on enhancing the broader payment landscape.
“This is why Ant International continues to collaborate with Banking Circle, who share our vision of making cross-border transactions faster, more cost-effective, and more transparent.”
— Kelvin Li, Head of Platform Tech at Ant International
This innovative project was more than just a technological advancement – it has redefined Banking Circle’s relationship with Ant International. Moving beyond the traditional bank-customer dynamic, “we became co-builders, working hand-in-hand to explore the full potential of tokenised deposits, and we look forward to deepening our collaboration“ says Kelvin Li.
What began as a proof of concept has now evolved into real-world adoption. Looking ahead, Ant International is exploring the potential for more enhanced user experiences that can make the system smarter. One example is programmable payments.
By leveraging simple and straightforward smart contracts, functions such as cash pooling and auto-sweeping – once confined to complex transactional banking systems can now be executed on the blockchain. AI may also be used to forecast future cash flows and optimise global liquidity management, reducing reliance on manual treasury management.
At Ant International, the focus in 2025 and beyond will be on harnessing the power of AI and blockchain to enable programmable payments to forecast future cash flows and optimise global liquidity management.