JD.com and Ant Group Lead Drive for Yuan-Backed Stablecoins to Compete with US Dollar Dominance

Chinese Tech Giants Push for Yuan-Pegged Stablecoins Amid Increasing Dollar Influence

China's technology leaders JD.com and Ant Group are intensifying efforts to promote yuan-tied stablecoins as part of a broader strategy to challenge the global dominance of the US dollar in digital finance.

According to sources reported by Reuters, both companies have been engaging with the People’s Bank of China (PBOC), advocating for regulatory approval of stablecoins pegged to the offshore yuan, specifically for issuance in Hong Kong. Their goal is to bolster the internationalization of the Chinese currency across digital payment networks.

 

Strategic Importance of Yuan Stablecoins in International Trade

In private discussions, JD.com pressed regulators on the urgent need for offshore yuan stablecoins to ensure that cross-border yuan payments remain competitive against increasingly popular US dollar stablecoins such as USDT and USDC. Analysts and industry leaders echo these concerns, warning of potential risks if China's digital currencies lag behind.

Wang Yongli, co-chairman of Digital China Information Service Group and a former Bank of China executive, highlighted that inefficient yuan cross-border payments could pose a strategic risk for the nation. Xiao Feng, chairman of leading cryptocurrency exchange operator HashKey, observed that a rising number of Chinese exporters and global merchants now prefer settling trades in dollar-backed stablecoins.

 

Expanding Blockchain Payment Networks and Stablecoin Initiatives

Both JD.com and Ant Group have previously revealed intentions to create stablecoins anchored to the Hong Kong dollar. These moves leverage upcoming regulatory changes in Hong Kong, set to take effect August 1, that provide a framework for stablecoin issuance and oversight.

Ant Group is preparing license applications for stablecoin operations in major financial hubs, including Hong Kong, Singapore, and Luxembourg. This is part of a broader initiative to broaden its blockchain-driven cross-border payment ecosystem.

JD.com also plans to introduce its own Hong Kong dollar-backed stablecoin by year-end. The company aims to accelerate global transaction speeds and lower costs for international traders. JD.com is also considering additional fiat-backed stablecoins, subject to future regulatory developments. These initiatives underscore the increasing role of blockchain technology and digital stablecoins in reshaping global finance.