In this article:

đŸ”č JD.com and Ant Group seek approval to issue stablecoins backed by offshore yuan in Hong Kong

đŸ”č New regulatory framework for stablecoins comes into effect on August 1

đŸ”č Chinese firms aim to challenge the dominance of USD-pegged stablecoins

While the stablecoin market is largely dominated by the U.S. dollar, Chinese tech giants JD.com and Ant Group are looking to change the game. Both companies have submitted proposals to the People's Bank of China to launch stablecoins backed by offshore yuan in Hong Kong. Their goal? To increase the yuan’s global adoption and challenge the U.S. dollar’s supremacy in the digital asset space.

According to the Bank for International Settlements, over 99% of stablecoins are currently denominated in USD. The global stablecoin market is worth about $247 billion and could grow to $2 trillion by 2028, according to Standard Chartered.

🏩 A Stable Yuan on the Global Stage?

Even though China officially banned crypto in 2021, JD.com and Ant Group’s initiative reveals that the country still harbors ambitions in the digital asset sphere. A new Hong Kong law, effective August 1, will allow companies to legally issue stablecoins, opening the door for Chinese firms to enter the international playing field.

Shen Jianguang, JD.com’s chief economist, said:

“If China doesn't develop its own stablecoin, it’s effectively withdrawing from the race for global currency dominance.”

JD.com’s founder Richard Liu reportedly told employees that the company aims to apply for stablecoin licenses in all major markets, cutting cross-border transaction costs by 90% and reducing settlement time to under 10 seconds.

🧭 Hong Kong as a Testing Ground

Ant Group is reportedly in talks not only with the PBoC but also planning to seek stablecoin licenses in Luxembourg and Singapore. The goal is to build a network of offshore yuan-pegged stablecoins that could bypass China's strict capital controls.

Robin Xing of Morgan Stanley believes Hong Kong is the ideal testing ground for China’s ambitions. He added that China must embrace the tokenization of currencies to stay competitive in the race for digital finance infrastructure.

đŸ€ Partnerships Powering the Digital Yuan

North King Information Technology, a Shenzhen-listed firm, announced a strategic partnership with Hong Kong-based GoFintech Quantum Innovation. The goal is to build the technological infrastructure for stablecoins, tokenized real-world assets (RWA), and other digital innovations.

The companies plan to develop secure hardware and software wallets for stablecoins. GoFintech is already producing hardware wallets, while North King is working on quantum-resistant wallets through a collaboration with Quakey Tech.

🌐 USD vs. Yuan: The Digital Currency Battle Begins

While the U.S. dollar maintains a 48.46% share of global payments, the yuan trails far behind at just 2.89%, according to SWIFT data. Many Chinese exporters have already turned to USD stablecoins like USDT for efficiency and accessibility.

Xiao Feng from HashKey Exchange argues that China can no longer delay its entry into the stablecoin race. With Hong Kong’s new regulations and advanced tech infrastructure, the yuan may soon re-enter the global stage as a serious digital competitor.



#china , #stablecoin , #Yuan , #CryptoAdoption , #Regulation

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