Global tech heavyweights JD.com and Ant Group aiming for worldwide influence through development of yuan-backed digital currencies
In a significant move, the U.S. Senate has passed the GENIUS Act, setting clearer regulatory standards for U.S. dollar-pegged stablecoins (Sources: 1, 2). This development comes as JD.com and Ant Group, two major Chinese companies, are pushing for yuan-backed stablecoins to boost the yuan's international usage and offer an alternative to U.S. dollar-pegged tokens like Tether (USDT) and USDC (Sources: 1, 3).
JD.com is advocating for yuan-backed stablecoins to support yuan internationalization, as over 99% of stablecoins are currently pegged to the U.S. dollar. The company plans to launch a Hong Kong dollar-pegged stablecoin initially, under the "Jcoin" trademark, taking advantage of Hong Kong's new stablecoin regulations effective August 1, 2025 (Sources: 1, 2). The goal is to cut cross-border transaction costs by 90%, thereby improving global payment systems and challenging the dominance of dollar-based tokens (Sources: 1, 2).
Ant Group, similarly, is preparing to apply for stablecoin licenses in Hong Kong and Singapore and is engaging with U.S. stablecoin issuer Circle to integrate USDC into its blockchain once regulatory compliance is assured (Sources: 1, 4). This move suggests a dual strategy: pushing offshore yuan-backed digital currencies to support China's goal of yuan internationalization, while also leveraging established dollar stablecoins for interoperability in global blockchain finance.
Beijing's ambition is to counter U.S. dollar dominance in global digital finance by supporting yuan stablecoins operating from jurisdictions like Hong Kong, which has adopted a permissive regulatory framework for stablecoins (Source: 1, 3). Analysts view this push as integral to China’s long-term plans to elevate the yuan as a significant global digital currency and payment medium, amid fierce competition with the U.S. for digital currency leadership (Source: 1, 3).
Meanwhile, Ripple Labs Inc. has announced it is applying for a U.S. banking license from the Office of the Comptroller of the Currency (OCC), while Circle Internet Financial has applied to manage its USDC stablecoin reserves under a national trust bank (Sources: 1, 5). These applications come in response to advancing federal stablecoin regulations.
South Korea has halted CBDC trials and is shifting focus to stablecoins, according to recent news (Source: 6). Both JD.com and Ant Group are preparing applications for stablecoin licenses in key financial hubs, including Hong Kong and Singapore (Source: 7).
The ongoing developments in the stablecoin landscape signal a pivotal moment in digital currency development. Experts warn that China faces a strategic risk if cross-border yuan payments continue to lag behind the efficiency of U.S. dollar-pegged stablecoins (Source: 8). However, Jeremy Allaire, CEO of Circle Internet Financial, has stated that stablecoins are near a breakout moment (Source: 9).
In conclusion, the global race for stablecoin dominance is heating up. With the U.S. Senate passing the GENIUS Act and companies like JD.com and Ant Group pushing for yuan-backed stablecoins, we are witnessing a significant shift in the digital currency landscape. The future of cross-border payments and the global monetary system will be shaped by regulatory frameworks, technological innovation, and international competition.
- The financial industry is witnessing a significant shift due to the growing interest in stablecoins, with enterprises like JD.com planning to launch Hong Kong dollar-pegged stablecoins and Ant Group aiming to integrate USDC into its blockchain.
- Technology plays a crucial role in this competition as companies, such as Ripple Labs Inc. and Circle Internet Financial, are applying for banking licenses and trust bank management respectively, to cope with advancing federal stablecoin regulations.
- In the midst of this, regulation will be a key determinant of the race for stablecoin dominance, as exemplified by the passage of the GENIUS Act in the U.S. Senate, which establishes clearer standards for U.S. dollar-pegged stablecoins.
