Ant Group, the fintech powerhouse behind Alipay, has introduced Jovay, a new Layer-2 scaling network built directly on Ethereum, targeting the tokenization of real-world assets (RWAs) for institutional finance. The network is designed to bridge traditional financial systems with decentralized infrastructure, focusing on compliance and enterprise-grade performance rather than retail speculation.
Jovay combines zero-knowledge proofs and optimistic rollups to deliver enhanced security and speed, while integrating AI tools for real-time verification of on-chain and off-chain data. In early testing, the network achieved an impressive 22,000 transactions per second (TPS), with scaling ambitions aimed at 100,000 TPS. This far exceeds current leaders like Coinbase's Base, which processes under 100 TPS, and positions Jovay to potentially support Alipay's 1.4 billion users.
The network follows a five-phase operational model covering asset registration, tokenization, compliance checks, trading, and reporting, ensuring regulatory oversight while maintaining Ethereum's transparency. Abbas Khan of the Ethereum Foundation described this move as a "turning point" for blockchain adoption, highlighting a strategic shift where major corporations are embracing public chains over private networks like Hyperledger.
By building on Ethereum, Ant Group aims to reduce costs and connect with the broader DeFi ecosystem, potentially tokenizing assets such as bonds, loans, invoices, and real estate. This initiative signals Ethereum's maturation into foundational infrastructure for global finance, with Jovay serving as a blueprint for compliant decentralized finance.
