• JD.com and Ant Group want approval to launch a stablecoin backed by offshore yuan in Hong Kong.
• Over 95% of stablecoins are tied to the US dollar while yuan usage in crypto payments keeps falling.
• Hong Kong will begin issuing stablecoin licenses next month as China explores offshore yuan token options.

JD.com and Ant Group have proposed a yuan-pegged stablecoin to China’s central bank. The firms want the token launched in Hong Kong. They believe this would help promote the yuan in global markets. They also want to reduce reliance on dollar-backed stablecoins.

According to Reuters, JD com and Alibaba’s Ant Group are urging China’s central bank to authorize yuan-based stablecoins. They proposed launching stablecoins in Hong Kong pegged to the offshore yuan. JD com is a major self-operated e-commerce platform in China, and Alibaba is a…

— Wu Blockchain (@WuBlockchain) July 4, 2025

Executives from both firms have held private talks with the People’s Bank of China. Their proposal focuses on using an offshore yuan rather than the Hong Kong dollar. They argue that the Hong Kong dollar is still tied to the U.S. dollar, which limits its usefulness.

China’s Declining Role in Cross-Border Crypto Payments 

The proposal comes as the yuan loses ground in global crypto transactions. More than 95% of stablecoins are currently linked to the U.S. dollar. Many Chinese traders now use USDT for trade because it avoids capital restrictions and allows quick settlements.

Wang Yongli, a former deputy at the Bank of China, warned about risks linked to slow yuan integration in cross-border payments. This concern is shared by several Chinese firms. JD.com believes that action is needed soon to stop further decline.

Stablecoin Strategy May Start in Hong Kong Then Expand

JD.com has recommended that stablecoin issuance should start in Hong Kong. Later, the rollout could move to China’s free trade zones. This phased plan could help the yuan gain international use without disrupting domestic markets.

Hong Kong is preparing to issue stablecoin licenses starting next month. The city’s new digital asset framework promotes real-world token usage. Ant Group and JD.com are already planning to apply for licenses in both Hong Kong and Singapore.

JD.com’s founder aims to secure licenses in all major sovereign markets. The company sees this as key to expanding the yuan’s global reach. Ant Group also views the stablecoin move as part of a larger strategy to reshape global finance.

Positive Early Response from Regulators Encourages Firms

Initial responses from Chinese regulators have been described as positive. While the PBOC has not made a public statement, internal discussions show interest. Advisors close to the central bank confirmed that officials are now studying the proposal.

The idea is seen as a way to support currency goals without weakening China’s capital controls. A stablecoin backed by offshore yuan could give China a new path to increase its financial influence abroad.

Meanwhile, the PBOC plans to launch its digital yuan hub in Shanghai. Officials say this center will support the internationalization of China’s currency.