Ant Group Fires Back at Controversial Rare Earth-Backed Stablecoin Proposal

Fintech giant slams 'resource-backed crypto' scheme as regulators circle.

When a mining consortium proposed pegging a new stablecoin to rare earth metals last week, they probably didn't expect Ant Group to come out swinging. The Alibaba affiliate just issued its most aggressive crypto statement since China's 2021 crackdown.

The rebuttal comes as stablecoins face mounting scrutiny globally. 'Asset-backed tokens only work when the assets exist,' an Ant spokesperson noted dryly - a not-so-subtle dig at the project's vague collateral claims.

Industry watchers see this as the latest skirmish in China's delicate dance with blockchain. While Beijing maintains its crypto trading ban, state-linked firms keep exploring distributed ledger tech. The rare earth angle adds geopolitical spice - these metals power everything from EVs to missiles.

For now, Ant's move signals that not all 'innovation' gets rubber-stamped. Even in Web3, some bridges are too far - especially when they involve China's strategic resources. The mining group's whitepaper might need more than a token revision.

TLDR

• Ant Group denied reports about working with the PBoC on a rare-earth stablecoin project.
• The company stated on Weibo that it has never had such plans with any relevant institutions.
• Regulators in China recently instructed brokerages to reduce research and commentary on stablecoins.
• Mainland China continues to ban cryptocurrency trading due to concerns over financial stability.
• Ant Group will integrate Circle’s USDC into its blockchain platform for overseas markets once compliance is met.

Ant Group rejected online speculation about a joint rare earth stablecoin project with the People’s Bank of China (PBoC). The company stated on Weibo that such claims were false. It urged the public to remain alert and avoid misleading information.

Ant Group’s Official Response

On Sunday night, ANT Group confirmed there were no such plans with any relevant institutions. “Ant Group has never had such plans with relevant institutions,” the company wrote on Weibo. It also urged the public to “beware of being deceived” by unfounded reports.

Ant Group today denied an online rumor that the Chinese fintech giant will invest CNY10 billion (USD1.4 billion) in the first phase to co-develop the world's first rare earth-backed yuan #stablecoin with the People's Bank of China and China Rare Earth Group. @AntGroup… pic.twitter.com/kDAFVlDsa1

— Yicai 第一财经 (@yicaichina) August 11, 2025

The denial followed rumors linking Ant Group to a potential stablecoin backed by rare earth resources. These claims spread rapidly on Chinese social media platforms. However, the company acted quickly to clarify its position.

Authorities have increased monitoring of digital asset discussions in China. Last month, regulators instructed brokerages to scale back commentary on stablecoins, aiming to curb potential domestic enthusiasm for cryptocurrencies.

Regulatory Environment in Mainland China

Mainland China maintains a ban on cryptocurrency trading due to financial stability concerns. Local governments in Beijing, Suzhou, and Zhejiang recently warned against illicit fundraising linked to stablecoins, reflecting the government’s strict stance on virtual currencies.

Chinese financial regulators also directed brokerages to halt publishing studies or hosting seminars promoting stablecoins. The measures sought to reduce market speculation. After receiving this guidance, brokerages and think tanks canceled planned events.

The MOVE came despite renewed speculation over China’s broader stance on digital assets. Hong Kong recently introduced new rules for stablecoin issuers, which have fueled cross-border industry interest.

Ant Group’s Blockchain Activities

Ant Group remains active in blockchain technology despite restrictions on domestic cryptocurrency activity. The company is working to integrate Circle’s USDC into its blockchain platform. This will proceed once the token achieves full U.S. compliance under the GENIUS Act.

Additionally, Ant Group has explored stablecoins pegged to the Hong Kong dollar. These initiatives target overseas markets rather than domestic use. This approach aligns with regulatory requirements in mainland China.

Other Chinese companies are pursuing similar strategies. JD.com announced plans to seek stablecoin licenses in multiple jurisdictions. The company aims to lower costs and speed up cross-border payments.

Globally, stablecoin adoption is accelerating. U.S. President Donald Trump recently signed the first federal stablecoin bill. Western Union and Ripple have also outlined strategies for entering this growing market.