Chinese tech giants JD.com and Ant Group are reportedly urging the People's Bank of China (PBOC) to grant permission for issuing yuan-backed stablecoins, in a bid to counter the growing dominance of dollar-backed stablecoins in the global digital economy. This move signals a significant shift in Beijing's approach to digital assets, as it seeks to internationalize the yuan without fully lifting capital controls.
Yuan Stablecoin Plans Surface
According to a Reuters report citing anonymous sources, JD.com and Ant Group plan to launch stablecoins linked to offshore yuan (CNH) in Hong Kong after the city's new cryptocurrency regulatory framework takes effect on August 1, 2025. Both companies have been in discussions with PBOC officials, though no official approval has been granted. The Hong Kong government has been building a licensing regime for stablecoin issuers since 2023, treating it as a sandbox for China to explore digital assets without fully opening its domestic market.
The proposed stablecoins would be initially used within Hong Kong's regulated crypto ecosystem, potentially providing a local alternative to dominant dollar stablecoins like USDT and USDC. JD.com, through its financial arm JD Finance, and Ant Group, operator of Alipay, both have extensive experience in digital payments and blockchain technology. They see stablecoins as a way to facilitate cross-border trade settlements in yuan, especially along the Belt and Road Initiative corridors.
Dollar Stablecoin Hegemony Sparks Alarm
The push for yuan stablecoins comes amid growing concern in China that dollar-denominated stablecoins are further entrenching the U.S. dollar's global reserve status. Tether (USDT), the largest stablecoin, holds over $80 billion in U.S. Treasuries, effectively lending support to the U.S. government. Former and current U.S. officials have openly stated that stablecoins can extend the dollar's hegemony, and the U.S. Congress is advancing the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) to create a federal regulatory framework.
Wang Yongli, former vice governor of the PBOC, recently warned that the global expansion of dollar stablecoins presents a strategic risk to yuan internationalization. “If cross-border yuan payment is not as efficient as dollar stablecoins, it would be a strategic loss for China,” he said. Data from SWIFT shows the yuan's share in global payments fell to 2.89% in May 2025, far behind the dollar (over 47%) and the euro (over 20%), highlighting the uphill battle for China's currency ambitions.
Challenges and Opportunities for Yuan Internationalization
Despite the ambitious plans, the success of yuan stablecoins faces fundamental hurdles. China's strict capital controls limit the convertibility and liquidity of offshore yuan, making it difficult for a stablecoin to gain global traction. The PBOC has already launched the digital yuan (e-CNY) for domestic retail use, but it operates on a permissioned blockchain and is not designed for decentralized cross-border use. A yuan stablecoin issued by private entities would need to comply with both Hong Kong's regulations and the PBOC's monetary policy restrictions.
Analysts believe that even if approved, the yuan stablecoin would primarily serve Hong Kong's local crypto market, reducing reliance on USDT in the region. It could also be used for trade finance between China and Belt and Road countries, offering a digital alternative to the SWIFT system. However, without deeper liberalization of the yuan, these stablecoins are unlikely to challenge the dollar's dominance on a global scale.
The push by JD.com and Ant Group marks a rare instance of Chinese tech companies openly advocating for a digital asset that could compete with the dollar. It also reflects a broader strategic debate in Beijing: whether to maintain tight control over capital flows or to embrace stablecoins as a tool for currency internationalization. With Hong Kong's new law set to take effect in August, all eyes are on whether the PBOC will give the green light to the first yuan-backed stablecoin.