Chinese Stablecoin: JD And Ant Group On A Crusade For The Approval Of The Digital Yuan

China, threatened by tariffs, the semiconductor war, and tensions surrounding its oil supply in the Middle East, is it on its knees? The scenario would be tempting for its detractors. Yet, rather than begging the United States for clemency, it responds differently. Quietly. It is refining a discreet but powerful monetary weapon: the yuan-backed stablecoin. Behind Hong Kong, a strategic battle is brewing.

Why China is pushing JD.com and Ant into the stablecoin war

In the hushed corridors of Beijing, the giants JD.com and Ant Group do not mince words. For several months, they have been pleading before the People’s Bank of China (PBOC) to approve a stablecoin based on the offshore yuan. This initiative is happening alongside another major geopolitical shift: in Russia, the digital ruble is about to become mandatory for banks and large retail chains. Hong Kong, this half-Chinese half-international hub, would be their playground.

Why a yuan stablecoin? Because the one in Hong Kong dollar remains, in many respects, an extension of the greenback. For Richard Liu, founder of JD.com, the issue is clear: the yuan backed by a stablecoin is essential to support the internationalization of our currency.

Hong Kong will officially become, as of August 1, 2025, a regulated ground for stablecoins. JD and Ant see a geopolitical opportunity. Amid rising monetary tensions, they want to free themselves from the digital dollar, which, according to the Bank for International Settlements, accounts for more than 99% of existing stablecoins.

What China proposes is not a Western-style crypto adoption. It is a response. A crypto-pivot designed within the rules… of the Party.

Yuan Stablecoin: the crypto offensive of the Chinese giants in Hong Kong

Hong Kong, long a financial laboratory for mainland China, has become a key pawn again in the global monetary puzzle. On May 21, 2025, the city adopted the Stablecoins Bill, an ambitious legislation regulating stablecoin issuers.

Starting with the law’s application in August, only issuers with a license can operate. Mandatory reserves, audits, total transparency, everything is designed to attract institutional investors and reassure governments. JD and Ant are pleased. They are already competing to obtain their ticket.

For the People’s Bank of China, this progress is also a real-world test. Because while Beijing still bans cryptos on the mainland, it observes Hong Kong as a legal and technological mirror. A form of regulation without direct control. As Huang Yiping recently explained, monetary advisor to the PBOC:

Since China’s capital account is not fully liberalized, it would be very difficult to launch a stablecoin nationally.

In summary, China is playing with the fire of crypto assets… but it holds the matchstick.

Behind the Curtain: What the Chinese Interest in Stablecoins Hides

Behind this rush to stablecoins hides a dual agenda. The first, economic: to meet the growing demand from Chinese exporters, who massively turn to USDT to circumvent capital controls and limit currency risks. The second, political: to weaken the dollar’s dominance in international payments.

• The yuan today represents only 2.89% of global payments (SWIFT, May 2025);
• Dollar stablecoins (USDT, USDC) cover more than 99% of the market;
• The stablecoin market is estimated at $247 billion, projected to reach $2,000 billion by 2028 (Standard Chartered);
• The crypto platform Crypto HK observes a fivefold increase in USDT usage among Chinese exporters since 2021.

Ant Group also plans to obtain licenses in Singapore. For its part, JD proposes that the yuan stablecoin be tested in Hong Kong before deployment in mainland China’s free trade zones.

And behind the scenes? The strategic partnership between North King and GoFintech. Together, they are developing wallets for stablecoins… compliant with Chinese standards. Hardware and protocols to guarantee security. A crypto ecosystem calibrated for export, but designed in Beijing.

As dedollarization accelerates — openly or behind the scenes — the world is seeking alternatives. SWIFT faces rivals, dollar stablecoin regulations are tightening in Europe, and CBDCs are spreading. In China, it takes a very concrete form: the digital yuan. A state token, programmable, compatible with the vision of control that Beijing cherishes so much.