Chinese fintech giant Ant Group, the force behind Alipay’s 1.4 billion-user payment network, has launched Jovay, a new Layer-2 (L2) blockchain built on Ethereum. This strategic move aims to revolutionize global finance by bringing real-world assets (RWAs) on-chain at an institutional scale, signaling a significant validation of Ethereum’s role as foundational infrastructure for mainstream finance and potentially onboarding a massive new user base.
Ushering in a New Era for Real-World Assets
Jovay, described by Ant Digital as a "compliance-first, AI-assisted scaling network," is designed to integrate real-world data and value flows into decentralized finance. Unlike many blockchain projects, Jovay launches without a native token, clearly indicating its focus on enterprise and institutional adoption rather than retail speculation. The platform leverages a sophisticated dual-prover system, combining zero-knowledge and optimistic hybrid technologies, to ensure both scalability and robust verifiability. During testnet trials, Jovay achieved impressive speeds of 15,700 to 22,000 transactions per second (TPS), with an ambitious target of 100,000 TPS, vastly outperforming current Ethereum L2s. This capability, coupled with a five-stage pipeline for asset registration, structuring, tokenization, issuance, and trading, complete with regulatory verification checkpoints, positions Jovay to bring much-needed regulatory clarity and institutional rigor to the rapidly growing RWA segment on Ethereum.
The Macro Shift Towards Public Blockchains
Ant Group's foray into building on Ethereum signifies a profound shift in how major global fintechs perceive blockchain risk. Historically, large corporations favored permissioned ledgers to mitigate volatility and public-chain exposure. However, Jovay’s architecture on Ethereum validates public infrastructure as a viable and secure foundation for institutional finance. This strategic decision offers a powerful hedge against technological isolation, fostering interoperability with Ethereum's expansive $100-billion DeFi ecosystem, and capitalizing on the significant cost efficiencies provided by L2 solutions. By leveraging Ethereum, Ant Group is not just launching another blockchain; it's confirming Ethereum's "quiet victory" in gaining institutional trust, establishing it as a neutral settlement layer that financial giants can rely on. This move paves the way for the next billion users to be onboarded as their assets, savings, and credit instruments seamlessly migrate onto compliant, Ethereum-based rails, expanding tokenized finance far beyond its current niche.
