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JD.com and Alibaba’s Ant Group are pushing for the Folks’s Financial institution of China (PBOC) to approve the launch of a stablecoin pegged to the yuan in Hong Kong in an effort to problem the dominance of US dollar-backed stablecoins.
The 2 tech giants stated that greenlighting a yuan-backed stablecoin might restrict the greenback’s affect in world commerce, in accordance with a July 3 Reuters report that cited sources accustomed to the matter.
JD.com And Ant Group Apply For Stablecoin Licenses
In response to the report, JD.com and Ant Group are at present getting ready to use for stablecoin licenses in each Hong Kong and Singapore.
JUST IN: 🇨🇳🇺🇸 China’s tech giants like Alibaba’s Ant Group are urging the central financial institution to authorise Yuan-based stablecoins to counter the rising affect of USD stables – Reuters
The battle is ON! pic.twitter.com/qNYgG0k4UC
— Radar 𝘸 Archie🚨 (@RadarHits) July 3, 2025
JD.com has additionally reportedly proposed that yuan stablecoin issuance begin in Hong Kong earlier than pilots start in China’s free commerce zones. Early suggestions from regulators for this proposal have been constructive, the report stated.
Yuan’s Share Of World Funds Shrinks
The decision for a yuan-based stablecoin to be launched in Hong Kong comes after the foreign money’s share of worldwide funds slipped to 2.89% in Could, which is its lowest level in virtually 2 years. In the meantime, the greenback maintains a commanding 48%, the report famous, citing knowledge from Swift.
Former deputy head of Financial institution of China, Wang Yongli, warned final month that if yuan cross-border funds keep much less environment friendly than dollar-pegged stablecoins, which function 24/7 on the blockchain, it poses strategic dangers for China, in accordance with the report.
Hong Kong has already introduced a brand new digital asset plan, which addresses the regulation of stablecoins and promotes the tokenization of belongings via the area’s “LEAP” framework. As a part of this new framework, the federal government will implement a licensing regime for stablecoin issuers beginning Aug. 1, with the objective of facilitating “the event of real-world use instances.”
JD.com and Ant Group argue that that isn’t sufficient, in accordance with the report.
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