- JD.com and Ant Group are urging China’s central bank to approve stablecoins backed by Chinese yuan.
- The companies propose launching these stablecoins in Hong Kong to increase yuan use globally and reduce dependence on U.S. dollar tokens.
- Both firms plan to seek stablecoin licenses in Hong Kong and Singapore, with Hong Kong preparing a licensing regime for stablecoin issuers from August 1.
- China’s share of global payments in yuan has dropped to its lowest point in nearly two years, while the dollar dominates nearly half of transactions.
- The top 10 stablecoins by market size are all pegged to the U.S. dollar, highlighting calls for a yuan alternative in international finance.
JD.com and Ant Group, the fintech arm of Alibaba, are asking the People’s Bank of China to approve Chinese yuan-based stablecoins to address the global spread of U.S. dollar stablecoins. The companies suggest that these stablecoins, backed by offshore yuan, be launched in Hong Kong as a way to boost the yuan’s role in international trade.
According to recent discussions reported by Reuters, JD.com executives stated that introducing yuan stablecoins is urgent for promoting the currency’s use worldwide. The firms are getting ready to apply for stablecoin licenses in both Hong Kong and Singapore. Reuters notes that JD.com proposed starting yuan stablecoin operations in Hong Kong before further expansion. Early feedback from regulators has been described as positive.
China’s global payment share in yuan fell to 2.89% in May, its lowest level in almost two years, while the dollar maintains a dominant 48% share, based on figures from payment platform Swift and statements by Reuters. “If yuan cross-border payments remain less efficient than dollar stablecoins, it poses a strategic risk for China,” said Wang Yongli, former deputy head of Bank of China, according to the report.
The push comes as Hong Kong prepares to regulate stablecoins and introduce a licensing requirement for issuers starting August 1, under its new “LEAP” framework aimed at promoting real-world adoption and clarity for digital assets.
JD.com’s founder, Liu Qiangdong, said in June the company plans to apply for stablecoin licenses in major countries, following comments from the central bank governor about establishing an international digital yuan center in Shanghai. The central bank’s goal is to encourage a more balanced global currency system, moving away from heavy reliance on the dollar and euro.
According to CoinMarketCap, the total stablecoin market amounts to over $258 billion, with all of the top ten tokens tied to the dollar. The largest non-dollar stablecoin, EURC, is pegged to the euro and ranks 11th by market value.
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