JD.com and Ant Group Urge China to Approve Offshore Yuan Stablecoin

Highlights:

• Two firms want to launch a stablecoin in Hong Kong based on the local currency.
• Most of the stablecoins are backed by the dollar and occupy the largest share of the market.
• China may allow offshore yuan stablecoins as stablecoin use in trade grows and exporters shift to USDT for fast payments.

JD.com, a Chinese e-commerce company, and Ant Group, owner of the popular payment platform Alipay, are urging China’s central bank to allow the launch of a yuan stablecoin in Hong Kong. The two firms have held private talks with the People’s Bank of China (PBOC) to discuss their proposal. They view that an offshore yuan-pegged stablecoin would help the currency gain international usage. The company desires to encourage the use of the yuan in international trade and to decrease the presence of U.S. dollar-backed tokens.

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China's tech giants https://t.co/LOi8NHnjTY and Ant Group are urging the central bank to authorize yuan-based stablecoins to counter the growing sway of US dollar-linked cryptocurrencies, people with direct knowledge of the discussions said. More here: https://t.co/5VRYPCaTFB

— Reuters Business (@ReutersBiz) July 3, 2025

Executives from JD.com said the country needs to take urgent steps to expand the yuan’s global reach. They also recommended that it should commence issuance in Hong Kong and later extend to free trade zones in China. Both corporations are gearing up to obtain stablecoin approvals in both Hong Kong and Singapore. Early feedback from Chinese regulators has been described as positive by people close to the matter.

Yuan Stablecoin Seen as Urgent Response to Dollar Dominance

The call for a yuan stablecoin comes as dollar-pegged stablecoins continue to grow across global markets. More than 95% of stablecoins in the crypto market are tied to the U.S. dollar. Meanwhile, the use of yuan in payments is declining. This trend has raised concerns among industry leaders. Wang Yongli, the former deputy head of the Bank of China, warned against the gradual development of cross-border payments with yuan, as this would be risky in the long term. Many Chinese traders already use USDT for trade because it bypasses capital restrictions and offers fast settlements.

JD.com noted that using the Hong Kong dollar for stablecoins may not solve the issue, since the HKD is linked to the U.S. dollar. The company wants to issue stablecoins backed directly by the offshore yuan instead.

China Considers Offshore Moves as Digital Yuan Plans Advance

The PBOC has not commented publicly on the proposal. However, discussions within the central bank show growing interest in offshore yuan stablecoins. Advisors close to the PBOC said officials are now exploring the idea of launching such tokens in Hong Kong. In particular, they believe this move could support China’s long-term currency goals without changing its capital controls.

Ant Group, an affiliate company of Alibaba Group, is planning to apply for licenses in Hong Kong and Singapore. JD.com’s founder has said the company aims to secure licenses in all major sovereign currency markets. This approach could give the yuan more visibility in international finance. Meanwhile, Hong Kong will start issuing stablecoin licenses from next month. The city’s new digital asset framework focuses on tokenization and real-world adoption. The PBOC will launch its digital yuan operations hub in Shanghai. Officials believe this center will help internationalize the currency and reduce dependence on the U.S. dollar.

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