Tech Giants Push Offshore Yuan Stablecoin Approval in Hong Kong

Chinese e-commerce giant JD.com and fintech affiliate Ant Group held closed-door talks with the People's Bank of China (PBOC) this year, proposing a pilot for yuan-pegged stablecoins issued in Hong Kong. They argue such tokens would promote international use of the yuan and challenge dollar-linked cryptocurrencies in cross-border settlements.

Hong Kong's new regulatory framework, effective August 1, 2025, provides the legal basis for these offshore issuances. Both companies plan to issue Hong Kong dollar stablecoins under the new legislation but see an urgent need for yuan-denominated alternatives.

Strategic Response to Dollar Dominance

Industry players warn that the growth of dollar stablecoins poses strategic risks to yuan internationalization. Companies supporting exporters currently rely on USDT and other dollar tokens for cross-border transactions.

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.

Trade-settlement volumes in USDT by Chinese clients grew fivefold since 2021 as exports to international markets drove demand for dollar-based digital assets. The yuan's share of global payments fell to 2.89% in May 2025, its lowest in nearly two years.

Regulatory Framework and Market Expansion

Ant Group is preparing license applications in Hong Kong and Singapore, while JD.com's chairman indicated plans to seek approvals in other major offshore markets. The companies aim to create alternatives for exporters currently using dollar tokens.

China banned cryptocurrencies in 2021 but has tolerated blockchain innovations and piloted digital yuan projects domestically. Offshore yuan usage remains limited by capital controls, constraining international adoption.

PBOC Governor Pan Gongsheng has acknowledged that stablecoins present significant challenges and possibilities for China's financial system. The proposed yuan stablecoins would operate under Hong Kong's regulatory oversight rather than mainland Chinese jurisdiction.

Related: Crypto Hong Kong: The Blockchain Outpost of the Chinese World