Ant Group, the parent company of Chinese payment giant Alipay, has launched the service. Jovay is a second layer (L2) network built on top of Ethereum.
The new network was developed by Ant Digital Technologies, the crypto specialist arm of Ant Group. Focuses on tokenization of real world assets (RWA).
jobay Aims to facilitate instant and low-cost transactionsalso integrates value flows between different networks at an institutional security level.
Ant Group’s decision to build on Ethereum, a public decentralized network, is noteworthy. Instead of opting for a private chain or permissioned system, the company chose the existing infrastructure of the digital asset network, the second-largest digital asset network by market capitalization after Bitcoin.
Abbas Khan, an engineer at the Ethereum Foundation, believes: The launch “signifies that the next phase of global finance is being built on the foundation of Ethereum.”.
As explained by CriptoNoticias, the second layer scalability solution allows transactions to be performed outside of the main Ethereum network, increasing speed and reducing fee payments.
The magnitude of this news becomes clear when you consider Alipay, a mobile payment platform. Created by technology conglomerate Alibaba Groupestablished itself as one of the world’s largest financial systems.
That relevance is measured in numbers. By 2025, the application will reach 1.4 billion monthly active users worldwide, with total payments exceeding $20 trillion.
In its country of origin, China, it has a market share of approximately 54%, together with its competitor WeChat Pay, dominating the market. They control over 90% of all mobile transactions. The entry of this large user and volume platform into the digital asset ecosystem is a major impact event for the industry.