JD.com and Ant Group have pressured the People’s Bank of China to permit yuan-based stablecoins to counter the rise of USDC.
The companies suggest launching stablecoins in Hong Kong backed by the offshore yuan to improve the Chinese currency’s global position. They are ready to issue Hong Kong dollar-backed stablecoins once the local legislation begins on August 1st.
The Chinese stablecoin
JD.com is pushing for offshore yuan stablecoins as a strategy to support yuan internationalisation. The initiative highlights China’s goals to challenge the US’s dominance in the digital finance landscape and expand the reach of its currency around the world.
However, China banned cryptocurrency transactions, including private stablecoins, a move which intensified in 2021 due to concerns regarding financial crime, capital flight, and potential threats to financial stability.
Nonetheless, as a response to Ant International and JD.com, China put effort into developing and piloting its own digital yuan (e-CNY) as a central bank digital currency. This CBDC is seen as a means to modernise the country’s payment system and exert more control over its financial landscape.
If the companies’ efforts are successful, the move would mark a change in the way Beijing interacts with cryptocurrencies and in the country’s strategy of promoting the yuan. Stablecoin’s blockchain technology enables instant and borderless transfers of funds at a low cost. This offers the stablecoins the potential to spread quickly and disrupt traditional cross-border systems.
The current stablecoin market is small, valued at USD 247 billion, according to CoinGecko. Another source, Standard Chartered Bank, estimated that it could grow to USD 2 trillion by 2028. However, one issue in China’s goal to make the yuan a global currency through stablecoins is its reluctance to remove tight capital controls. The currency’s share fell to 2.89% in May 2025, according to SWIFT, and many Chinese exporters use USD-pegged stablecoins as the USD commands a 48.46% of total market share.
