Shanghai-Hong Kong Jointly Build Stablecoin Standards! Shanghai Tests Dual-Track Clearing, Central Bank's Global Center Settles in Shanghai

June 18 - At today's 2025 Lujiazui Forum, Pan Gongsheng, Governor of the People's Bank of China, announced the establishment of an international operating center for digital yuan. Meanwhile, the Shanghai Municipal Financial Office released favorable news pointing to more groundbreaking innovations in cross-border payments - piloting a 'digital yuan + stablecoin' dual-track clearing mechanism, directly addressing the cost challenges of cross-border payments for small and micro enterprises. Shanghai and Hong Kong will also collaborate to build standards for the issuance of offshore RMB stablecoins, promoting the tokenization of financial assets.

Cross-Border Payments Welcome 'Dual-Track' Breakthrough

Zhou Xiaoqian, Executive Deputy Director of the Shanghai Municipal Financial Office, revealed on the eve of this year's Lujiazui Forum that the upcoming major financial policy will focus on three main areas. The most eye-catching is the upgrade in the field of cross-border payments: Shanghai will pilot a 'digital yuan + stablecoin' dual-track clearing channel. This model aims to effectively reduce the high foreign exchange conversion costs faced by small and medium-sized enterprises in cross-border transactions through the collaborative application of emerging technologies.

Shanghai and Hong Kong Jointly Build Offshore RMB Stablecoin Standards

In terms of deepening regional financial collaboration, Shanghai will work with Hong Kong to jointly establish a system for the issuance of offshore RMB stablecoins. This move not only injects new vitality into the offshore RMB market but, more importantly, both parties will work together to promote the tokenization of traditional financial assets, including bonds and Real Estate Investment Trusts (REITs), exploring a new model for asset issuance, circulation, and settlement on the blockchain, significantly enhancing transaction efficiency and liquidity.

Pilot Expansion and Central Bank Support Digital Finance Accelerates

To match the innovative practices in cross-border payments, Zhou Xiaoqian pointed out that Shanghai's regulatory sandbox will also be expanded, with the current blockchain cross-border payment pilot range further extending to the Middle East and 16 ASEAN countries, opening up broader international trade settlement channels. At the same time, Governor Pan Gongsheng announced the establishment of the international operating center for digital yuan, providing strong national strategic support for the aforementioned innovations. This center will be dedicated to promoting the international operation of digital yuan, serving the development of financial market business and the overall innovation ecosystem of digital finance.