Breaking: JD.com & Ant Group Push for Game-Changing Yuan-Backed Stablecoin in Hong Kong

Hong Kong's crypto scene braces for disruption as Chinese giants JD.com and Ant Group lobby regulators for a yuan-pegged stablecoin approval.

Why it matters: This could be the first state-approved digital asset to bridge China's strict capital controls—assuming Beijing doesn't pull the plug.

The backchannel play: While mainland China bans crypto trading, Hong Kong's evolving regulatory framework makes it the perfect testing ground for 'controlled decentralization.'

Wall Street won't like this: A successful yuan-backed stablecoin could dent the US dollar's dominance in global trade settlements—if it survives the political minefield.

Bonus cynicism: Nothing says 'financial innovation' like creating a blockchain version of China's capital controls.

China Faces Digital Dollar Threat

The rise of dollar-linked stablecoin market is alarming for China. Over 99% of stablecoins are U.S. dollar-based. This is strengthening the dollar’s grip on global trade. Moreover, many Chinese exporters now prefer USDT for payments. JD.com argues this threatens yuan’s existence and internationalization.

Additionally, capital controls and trade tensions push businesses toward stablecoins. According to HashKey, another major Chinese player in the industry, more overseas buyers are paying Chinese exporters with dollar-pegged tokens. Hence, stablecoins are now vital for cross-border deals.

Regulators Eye Offshore Yuan Tokens

Moreover, the People’s Bank of China is listening. In closed-door talks, JD.com urged quick approval for offshore yuan stablecoin. They want to launch in Hong Kong first, then expand to free trade zones. Ant is also preparing license bids in Hong Kong and Singapore.

Furthermore, Chinese policymakers are warming up to this idea. PBOC advisors hint at support. The yuan’s global share is falling. Stablecoins could fix that—if China acts fast.

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