AsianFin -- JD.com and Ant Group, Alibaba’s fintech affiliate, are lobbying China’s central bank to greenlight stablecoins backed by the offshore yuan, in a bid to confront the growing global dominance of U.S. dollar–linked digital tokens, according to people familiar with the matter.
The companies are advocating for the launch of yuan-pegged stablecoins in Hong Kong, arguing that such a move could accelerate international adoption of the Chinese currency while mitigating the expanding influence of dollar-denominated stablecoins in digital finance and trade.
This initiative aligns with Hong Kong’s broader ambitions to rival the U.S. in building a regulatory framework for stablecoins, as the city positions itself as a hub for global digital finance. If approved, the proposal could mark a significant shift in Beijing’s stance on digital assets. China banned cryptocurrency trading in 2021, but stablecoins—particularly those tied to its own currency—may offer a sanctioned path forward for promoting yuan internationalization.
Stablecoins, which are digital assets pegged to fiat currencies or commodities like gold, enable low-cost, instant, cross-border transactions via blockchain. Though the market remains modest in size—about $247 billion according to CoinGecko—it is projected by Standard Chartered to balloon to $2 trillion by 2028. Nearly all stablecoins in circulation are currently tied to the U.S. dollar.
Both JD.com and Ant plan to issue stablecoins backed by the Hong Kong dollar when new local regulations take effect on August 1. However, JD.com has told the People’s Bank of China (PBOC) that pegging solely to the Hong Kong dollar—linked to the greenback—does little to support the yuan’s global push. The company has instead proposed piloting yuan-backed stablecoins in Hong Kong and later expanding to China’s free trade zones, sources said.
Industry figures are echoing the urgency. “The rise of dollar-based stablecoins poses fresh challenges to the internationalization of the yuan,” said Wang Yongli, co-chair of Digital China Information Service Group and a former Bank of China executive. “If cross-border yuan payments can’t match the efficiency of dollar stablecoins, it becomes a strategic vulnerability.”
PBOC, JD.com, and Ant Group did not respond to media's requests for comment as of press time.
According to HashKey chairman Xiao Feng, the situation has already reached a tipping point. Chinese exporters are increasingly relying on USDT, the dominant dollar stablecoin, for cross-border settlements. “More and more overseas clients are paying in stablecoins,” Xiao said. Crypto HK, a major Hong Kong crypto OTC platform, reported a five-fold increase in USDT transactions from Chinese clients since 2021.
China’s interest in stablecoins also reflects growing global momentum. In the U.S., President Donald Trump threw his support behind stablecoins shortly after his return to office in January, promising a regulatory framework to legitimize the sector.
In China, while general crypto remains off-limits, policymakers are warming to stablecoin potential. PBOC Governor Pan Gongsheng acknowledged the challenges posed by digital currencies, and PBOC advisor Huang Yiping recently called an offshore yuan stablecoin in Hong Kong “a possibility.”
Ant is reportedly preparing to seek stablecoin licenses in both Hong Kong and Singapore, while JD.com’s chairman Richard Liu is exploring similar applications in major global markets to enhance cross-border payments and forex efficiency.
The next steps remain uncertain, but industry insiders believe regulatory approval would open the door to a new era of crypto-native yuan finance—potentially reshaping the global stablecoin landscape and giving China a new digital tool in the ongoing currency competition.
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