Chinese tech giants JD[dot]com and Alibaba affiliate Ant Group are pressuring the People’s Bank of China to authorize yuan-based stablecoins.

The companies are proposing to launch an offshore yuan in Hong Kong to counter the U.S. dollar’s dominance in digital payments and accelerate the yuan’s internationalization, according to Reuters.

The lobbying effort comes as Hong Kong’s comprehensive stablecoin regulations take effect August 1, 2025, establishing one of the world’s most rigorous frameworks for digital currency issuance.

Both companies already plan to issue Hong Kong dollar-backed stablecoins, but argue that offshore yuan tokens are urgently needed as strategic tools for cross-border commerce.

Yuan Devaluation At Risk If US Dollar Stablecoins Dominate

According to Reuters, over 99% of the $247 billion global stablecoin market remains U.S. dollar-denominated.

The yuan’s share of global payments dropped to 2.89% in May, its lowest in nearly two years, while the dollar commands 48.46% market share through SWIFT payment systems.

“The global expansion of U.S. dollar stablecoins is posing fresh challenges to yuan internationalisation,” said Wang Yongli, former vice head of Bank of China and co-chairman of Digital China Information Service Group.

The push is a shift from China’s 2021 crypto ban, which is strategic, as it came at a time when Standard Chartered Bank projects the global stablecoin market could reach $2 trillion by 2028, driven by anticipated U.S. regulatory explicit clarity and institutional adoption.

Hong Kong Emerges as Digital Currency Testing Ground

Hong Kong’s stablecoin framework requires full reserve backing with high-quality liquid assets, segregated from the issuer’s funds and protected from creditor claims.

The minimum capital requirements are HKD 25 million or 1% of the total issuance, whichever is greater. Redemption at par within one business day is required under normal conditions.

Previously, JD.com’s subsidiary, Jingdong Coinlink Technology, entered the Hong Kong Monetary Authority’s stablecoin sandbox alongside Standard Chartered, Animoca Brands, and Hong Kong Telecommunications.