In a strategic move to elevate the Chinese yuan’s global influence, tech giants JD.com and Ant Group are lobbying the People’s Bank of China (PBOC) to authorize yuan-based stablecoins in Hong Kong. Reported by Reuters on July 3, 2025, this initiative aims to counter the overwhelming dominance of U.S. dollar-linked cryptocurrencies, which currently account for over 99% of the $247 billion stablecoin market. As stablecoins gain traction for efficient cross-border payments, this push could reshape global finance by promoting the yuan as a viable alternative to the dollar.
A Bold Proposal for Yuan-Based Stablecoins
JD.com, a leading Chinese e-commerce company, and Ant Group, the fintech arm of Alibaba, are urging the PBOC to greenlight stablecoins pegged to the offshore yuan (CNH) in Hong Kong. According to sources familiar with private discussions, JD.com’s proposal to issue these stablecoins and expand their use to offshore markets within China’s free trade zones has been well-received by regulators. Both firms are also preparing to launch Hong Kong dollar-backed stablecoins starting August 1, 2025, aligning with Hong Kong’s new stablecoin licensing regime. JD.com’s chairman, Richard Liu, has revealed plans to apply for stablecoin licenses in major currency countries globally to facilitate foreign exchange and cross-border payments, while Ant Group is seeking licenses in Hong Kong and Singapore to support offshore yuan stablecoins.
This initiative reflects a broader ambition to enhance the yuan’s role in global trade. Chinese exporters have increasingly adopted dollar-pegged stablecoins like Tether (USDT), with monthly trading volumes by Chinese clients surging five-fold since 2021, according to Crypto HK. Yuan-based stablecoins could offer a more efficient alternative, reducing reliance on dollar-denominated assets and mitigating exposure to U.S. financial sanctions.
Hong Kong’s Evolving Crypto Landscape
Hong Kong’s progressive regulatory framework is pivotal to this initiative. In May 2025, Hong Kong passed legislation to license stablecoin issuers starting August 1, creating a legal pathway for JD.com and Ant Group’s plans. The region is also reviewing the tokenization of real-world assets (RWAs), which has grown by 380% in three years to reach $24 billion in the first half of 2025. Hong Kong’s ambition to become a global hub for digital finance, overseen by the Securities and Futures Commission, supports the issuance of stablecoins and tokenized assets, positioning it as a strategic launchpad for yuan-based stablecoins.
| Aspect | Details |
| Stablecoin Market Size | $247 billion (2025), projected to reach $2 trillion by 2028 |
| U.S. Dollar Stablecoin Share | Over 99% (Bank for International Settlements) |
| Yuan Global Payment Share | 2.89% (SWIFT, May 2025) |
| Hong Kong Regulation | Stablecoin licensing begins August 1, 2025 |
| Key Players | JD.com, Ant Group, PBOC, Hong Kong Monetary Authority |
China’s Cryptocurrency Paradox
China’s cryptocurrency landscape is complex. Since 2021, the country has enforced a comprehensive ban on private cryptocurrency transactions, including most stablecoins, citing risks of financial crime, capital flight, and instability. Simultaneously, the PBOC is advancing the digital yuan (e-CNY), a central bank digital currency (CBDC) designed to modernize payments and enhance financial control. Unlike the e-CNY, which is government-issued, private stablecoins like those proposed by JD.com and Ant Group offer flexibility and innovation, potentially appealing to businesses seeking efficient cross-border solutions. The PBOC’s cautious approach to private cryptocurrencies contrasts with the potential openness to regulated stablecoins, as evidenced by the positive regulatory response to JD.com’s proposal.
The Global Stablecoin Race
The global stablecoin market is dominated by U.S. dollar-pegged assets, with Tether and USD Coin leading the charge. This mirrors the dollar’s role as the world’s primary reserve currency, with a 48.46% share in global payment transactions, per SWIFT. In contrast, the yuan’s limited 2.89% share underscores the challenge of internationalizing the Chinese currency. Industry experts emphasize the urgency of this shift. Wang Yongli, co-chairman of Digital China Information Service Group, warned, “It would be a strategic risk if cross-border yuan payment is not as efficient as dollar stablecoins.” Xiao Feng, chairman of HashKey, added, “China can no longer avoid taking action,” noting the growing use of dollar stablecoins by Chinese exporters.
Strategic Implications
The push for yuan-based stablecoins is driven by the need to streamline cross-border trade and reduce dependence on the U.S. dollar. By leveraging blockchain technology, these stablecoins could offer 24/7, low-cost transactions, appealing to global merchants and Chinese businesses alike. The initiative aligns with China’s broader vision of a “multipolar” currency system, as articulated by PBOC Governor Pan Gongsheng, where multiple currencies support global trade. However, the U.S. is also advancing its stablecoin framework with the GENIUS bill, passed by the Senate in June 2025, intensifying the global race for digital asset dominance.
Looking Ahead
The efforts by JD.com and Ant Group to introduce yuan-based stablecoins could mark a turning point in global finance. If approved, these stablecoins could enhance the yuan’s role in international trade, challenge the dollar’s digital dominance, and set a precedent for other nations to develop their own stablecoin ecosystems. However, regulatory hurdles and global competition will shape the outcome. As Hong Kong positions itself as a digital finance hub and China advances its CBDC, the success of this initiative could redefine the balance of power in the cryptocurrency and financial landscapes.