Chinese Tech Giants JD.com and Ant Group Push for Offshore Yuan-Backed Stablecoin Approval

Leading Chinese technology firms JD.com and Ant Group have submitted proposals to China's central bank requesting permission to issue yuan-pegged stablecoins in Hong Kong. The companies assert this move would enhance the Chinese currency's global adoption and counter the dominance of U.S. dollar-linked digital assets.

Currently, over 99% of stablecoins are dollar-denominated, according to the Bank for International Settlements. The global stablecoin market stands at approximately $247 billion, with Standard Chartered predicting it could reach $2 trillion by 2028.

Despite China's 2021 cryptocurrency ban, both companies believe offshore yuan-backed stablecoins could reshape Beijing's approach to yuan internationalization. Hong Kong is preparing to implement its Stablecoin Ordinance on August 1, creating a regulatory framework for stablecoin issuance, including those backed by the Hong Kong dollar.

JD.com's Chief Economist Shen Jianguang warned: "If China doesn't develop stablecoins, it risks conceding the next-generation global currency race." Founder Richard Liu aims to secure stablecoin licenses worldwide to reduce cross-border payment costs by 90% and slash settlement times below 10 seconds. Ant Group is pursuing similar licenses in Hong Kong, Luxembourg, and Singapore.

Financial data reveals challenges ahead - while the U.S. dollar commands 48.46% of global payments, the yuan's share fell to 2.89% in May. HashKey Chairman Xiao Feng noted Chinese exporters increasingly use dollar stablecoins as international merchants adopt USDT.

Meanwhile, digital yuan partner North King Information Technology recently partnered with Hong Kong's GoFintech Quantum Innovation to develop stablecoin infrastructure, including wallets and tokenization technology, marking China's deepening involvement in digital asset innovation.