China’s Tech Giants JD.com and Ant Group Propose Yuan Stablecoins

China’s tech giants JD.com and Ant Group are pushing the country’s central bank to approve yuan-backed stablecoins as a strategic move to counter the influence of U.S. dollar-based crypto assets.

According to a Reuters report and people familiar with the story, approval of their proposal could signal a fundamental shift in China’s regulatory approach to digital assets, aligning with broader objectives to expand the yuan’s influence on the international financial stage.

Strategic Shift Toward Stablecoin Regulation

The latest move aligns with the country’s strategic push to develop a comprehensive regulatory structure for stablecoins. This comes amid increasing competition with the U.S. to shape the future of international digital financial systems and trade networks.

Notably, with Hong Kong’s revised regulatory framework set to take effect on August 1, JD.com and Ant Group have announced their intentions to issue stablecoins backed by the local currency, aligning with the new legal standards.

“The global expansion of U.S. dollar stablecoins is posing fresh challenges to yuan internationalisation,” said Wang Yongli, co-chairman of Digital China Information Service Group.

China Pushes for a Global Yuan

As the second-largest economy globally, China has pursued the internationalization of the yuan, aiming to establish it as a reserve currency comparable to the U.S. dollar and euro.

According to an internal company source, JD.com has proposed initiating the issuance of yuan-denominated stablecoins in Hong Kong. It also has a long-term vision to expand the initiative to offshore jurisdictions within China’s free trade zones.

Richard Liu, chairman of JD.com, has announced plans to seek licenses in major global economies to support foreign exchange services and facilitate seamless cross-border payments.

For Ant, one of the sources confirmed that the tech giant is planning to apply for stablecoin licences in Hong Kong and Singapore. Despite the ongoing ban on cryptocurrencies in China, stablecoins are drawing growing interest from policymakers.

Stablecoin adoption is increasingly becoming popular and essential. Last month, South Korea’s central bank, the Bank of Korea (BOK), halted its central bank digital currency (CBDC) project.

CoinTab reported that the bank is prioritizing something bigger: a Won-backed stablecoin. The BOK noted that it is working on “Project Han River,” an initiative involving seven banks. The decision to halt the process comes as President Lee Jae-myung introduced official South Korean digital money as a top priority. The move aligns with the government’s primary economic objectives.