Following this announcement, the rollout of stablecoins in key global markets is set to reduce cross-border transaction costs by up to 90%, as well as cut settlement times to under 10 seconds.
In addition, this initiative represents a part of JD.com’s strategy to accelerate overseas development, as the company will first apply for licences in Hong Kong, with plans to expand into other economies and full rollouts being expected to take place later in 2025. The institution will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
According to officials of the company, JD.com will initially deploy the stablecoin for business payments, using its in-house blockchain network. At the same time, the aim of this initiative is set on the process of expanding the stablecoin into consumer-facing payments on its ecommerce platforms, potentially enabling its users to pay with JD-issued tokens.
The announcement came as the US Senate passed the Guiding and Establishing National Innovation for US Stablecoins, also known as the GENIUS Act, a landmark bill establishing federal guardrails for stablecoins. A key provision of the GENIUS Act was the process of establishing a federal regulatory framework for stablecoins, an area of the cryptocurrency sector that has grown rapidly in recent years but remained largely unregulated. While there is broad consensus in Congress that oversight is needed, political disagreements have slowed the overall procedure.
In addition, JD.com’s push into the stablecoin sector comes after China announced its plans to expand the international use of the digital CNY in a push for the development of a multi-polar global currency system. With this strategy, the country is expected to establish an international operation centre for e-CNY in Shanghai, according to People's Bank of China officials. The initiative also took place in the wake of the renewed demand for a global CNY, as international trade tensions sparked by the US tariff policies prompted investors to seek alternatives to USD-based investments.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now