Key Takeaways:
- JD.com and Ant Group are urging approval for a yuan stablecoin to counter USDT dominance.
- U.S. dollar stablecoins account for 99% of the market, pushing Chinese businesses toward USDT.
- A yuan stablecoin in Hong Kong could offer Beijing a strategic entry point into global digital finance.
Two of China’s leading tech powerhouses — JD.com and Ant Group — are lobbying the People’s Bank of China (PBOC) to greenlight a yuan-pegged stablecoin in Hong Kong. According to sources cited by Reuters, the push is part of a broader strategy to push back against the global dominance of U.S. dollar-backed stablecoins, particularly USDT, and boost the digital reach of the Chinese yuan.
China's tech giants https://t.co/LOi8NHnjTY and Ant Group are urging the central bank to authorize yuan-based stablecoins to counter the growing sway of US dollar-linked cryptocurrencies, people with direct knowledge of the discussions said. More here: https://t.co/5VRYPCaTFB
— Reuters Business (@ReutersBiz) July 3, 2025
While both firms are preparing to issue Hong Kong dollar (HKD)-backed stablecoins once the city’s new crypto rules kick in on August 1, they argue that’s not enough. Since the HKD is pegged to the U.S. dollar, it doesn’t help advance China’s decade-long campaign to internationalise the yuan.
USDT Dominance Fuels Urgency for a Digital Yuan
The urgency is growing. More Chinese exporters and traders are using USDT to sidestep exchange rate risk and capital controls. OTC trading platforms like Crypto HK have reported a fivefold increase in USDT volume from Chinese clients since 2021.
A recent report from the Bank for International Settlements reveals that over 99% of stablecoins are dollar-backed, underlining just how far ahead the U.S. is in the digital payments race.
Wang Yongli, former vice head of the Bank of China, warned that the widespread use of U.S. dollar stablecoins poses a direct challenge to the yuan’s global ambitions.
Policy Roadblocks vs. Market Pressure
Beijing has long sought to make the yuan a competitor to the dollar and euro in global trade, but policy hurdles — including tight capital controls and the 2021 crypto ban — have stalled those ambitions.
Now, data from SWIFT shows the yuan’s share of global payments has dropped to just 2.89% as of May, while the U.S. dollar commands more than 48%.
“China has reached a point where it can no longer avoid taking action,” said Xiao Feng, chairman of Hong Kong-based exchange HashKey.
Hong Kong Could Be the Launchpad China Needs
With the U.S. moving quickly on stablecoin regulations — including support from President Donald Trump — China risks falling further behind.
Hong Kong, however, is fast becoming a regulatory sandbox. Ant Group is reportedly preparing stablecoin license applications for both Hong Kong and Singapore, while JD.com is eyeing global markets to roll out yuan-backed digital assets.
Also Read: Bitcoin Price Forecast: Is $170K Next After US-China Trade Breakthrough? – Analyst
If successful, the effort could help Beijing balance its crypto restrictions with its global finance ambitions — using Hong Kong as a legal workaround.
The global stablecoin race is accelerating. If China wants to preserve and extend the yuan’s influence in global trade, approving a yuan-backed stablecoin in Hong Kong may be its best near-term move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
