Due to the high tax limits, slow cross-border transactions, various restrictions, and scrutiny in RMB, '[Why did JD issue stablecoins? Response: Aimed at enhancing cross-border payment capabilities and serving the real economy]' said Liu Peng, CEO of JD Coinchain Technology. 'Under the guidance of JD Group's overseas business development strategy, our team conducted detailed research and analysis in the Web3 field, finding that issuing payment-type stablecoins via blockchain technology not only solves our own cross-border settlement issues but also effectively serves other businesses and the real economy, creating significant economic and social effects for both the company and society. Meanwhile, the Hong Kong government is also actively supporting the Web3 industry. Based on comprehensive judgment, we promptly initiated the licensing application in Hong Kong, and after nearly a year's effort, we are very honored to have received regulatory recognition and become a stablecoin issuer in Hong Kong.'
JD Stablecoin (JD-HKD) is a compliant Hong Kong dollar stablecoin launched by JD Group's financial technology subsidiary 'JD Coinchain Technology (Hong Kong),' with its development, regulatory background, technical architecture, and market impact as follows:
I. Background and Compliance Progress
Regulatory Framework
The Hong Kong (Stablecoin Regulation Draft) was passed in May 2025, becoming the world's first comprehensive regulatory framework for fiat-backed stablecoins. JD.com is one of the first three institutions to enter the Hong Kong Monetary Authority's 'sandbox testing,' participating in compliance pilot programs alongside Standard Chartered Bank and Round Coin Technology.
Issuance Qualifications
JD Coinchain Technology has applied for a financial license in Hong Kong (Licenses 1/4/9) and undergoes monthly on-chain reserve audits by Deloitte to ensure fund transparency. Each JD-HKD is backed by 100% Hong Kong dollar cash reserves, held in custody by licensed financial institutions.
II. Core Mechanism and Technology
Pegging and Redemption
JD-HKD is issued on the Ethereum public chain and is pegged 1:1 to the Hong Kong dollar, allowing users to redeem Hong Kong dollars without fees at any time. Reserve funds are subject to thorough auditing.
A stablecoin is a type of cryptocurrency that is pegged to a fiat currency or physical asset. Compared to traditional cross-border remittance methods, stablecoin payments can complete fund transfers faster, reduce transaction fees, and operate continuously worldwide, 24 hours a day.
Recently, stablecoins have gained popularity for the following reasons:
On May 21, 2025, the Hong Kong Legislative Council passed the (Stablecoin Regulation Draft), establishing a licensing system for fiat-backed stablecoin issuers, improving the regulatory framework and enhancing investor and institutional confidence in the local virtual asset market.
Stablecoins are primarily used in the cryptocurrency trading market, as well as in cross-border payments and decentralized finance, with a relatively narrow application scope.
The main differences between stablecoins and digital currencies:
Stablecoin:
They are usually issued by private institutions or companies, such as USDT issued by Tether.
Digital Currency:
This includes central bank digital currencies issued by various countries' central banks or monetary authorities, such as China's digital yuan, as well as virtual digital currencies issued by non-financial institutions, such as certain cryptocurrency projects.
Overall, stablecoins face strict regulatory constraints in mainland China, with minimal market space. In Hong Kong, although there is a clear regulatory framework and pilot opportunities, there are still many challenges, and the development prospects remain to be observed.
The global stablecoin market is currently valued at over $240 billion, with the top two stablecoins, USDT and USDC, being fiat-backed stablecoins valued at approximately $150.4 billion and $59.3 billion, respectively.
With this growth rate, the stablecoin market is expected to surpass one trillion dollars, primarily driven by trading and payment needs. In other words, whoever has stablecoins holds financial discourse power.
