Chinese tech giants JD.com and Ant Group are reportedly lobbying for regulatory approval to issue stablecoins backed by the offshore yuan in Hong Kong, in a strategic push to reduce reliance on US dollar-denominated digital assets, according to a July 4 Reuters report.
Yuan-Based Stablecoins Proposed to Expand Global Influence
The companies aim to launch yuan-pegged stablecoins in Hong Kong, using the offshore Chinese yuan (CNH) as collateral. This would position the yuan as a competitive alternative to dollar-backed stablecoins like USDT and USDC, which currently dominate cross-border crypto settlements.
“The goal is to boost the yuan’s role in global digital finance,” a source familiar with the matter told Reuters.
JD.com is leading advocacy efforts, urging China’s central bank to approve the move. Ant Group, the fintech affiliate of Alibaba, is also expected to follow through with similar offerings after regulatory clearance.
Legislation Clears Way for Stablecoin Launch in Hong Kong
New Hong Kong stablecoin legislation, effective August 1, 2025, opens the door for licensed issuers to roll out HKD-backed stablecoins under strict oversight. JD.com and Ant Group both plan to utilize this framework initially before introducing yuan-pegged versions, pending approval.
This aligns with Beijing’s strategy to internationalize the yuan and develop regional financial influence amid rising geopolitical tensions.
China’s Crypto Ban Remains, But Strategy Evolves
Despite this momentum, mainland China maintains a strict ban on private cryptocurrencies and stablecoins, which was tightened in 2021 to curb illicit finance, capital flight, and unregulated speculation.
This policy, however, does not apply to Hong Kong, which operates under a separate financial system.
As a response to private-sector crypto growth, China launched its own central bank digital currency (CBDC), the digital yuan (e-CNY). While still in the pilot phase, it represents a state-controlled effort to digitize the yuan without ceding monetary authority.
Digital Yuan vs. Offshore Stablecoins
The proposed offshore yuan stablecoins would complement, not compete with, the digital yuan. Unlike e-CNY, which is tightly controlled by the People’s Bank of China (PBoC), offshore stablecoins are designed to circulate globally, especially in trade settlements and crypto exchanges.
This marks a strategic evolution in China’s global financial policy, using private tech firms to expand its currency’s digital footprint without loosening domestic controls.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.