JD.com and Ant Group have initiated the process of obtaining licenses to launch stablecoins denominated in yuan, aiming to strengthen the position of the Chinese currency in the global fintech market.
This is reported by Finway
Tech Giants Advocate for Yuan-Backed Stablecoins
Two leading technology companies in China, JD.com and Ant Group, have officially approached regulators to allow the operation of stablecoins directly linked to the yuan. They currently have permission to issue stablecoins backed by the Hong Kong dollar, but emphasize that this step does not contribute to global influence in the market, as the Hong Kong dollar is closely tied to the US dollar.
“Linking to the Hong Kong dollar, which is tightly pegged to the USD, does not solve the problem of dollar dominance.”
The companies believe that launching stablecoins linked to the yuan will help promote the national currency internationally and allow them to compete with major dollar-backed stablecoins, including USDT.
Plans for Geographic Expansion and Regulatory Support
JD.com and Ant Group propose to start issuing new digital assets from Hong Kong but are considering expansion into other jurisdictions. In particular, Ant Group is preparing to apply for licensing in Singapore as well. JD.com, for its part, advocates for the project’s expansion into free trade zones, which could potentially facilitate the development of cross-border payments and convenient exchanges of major currencies.
According to sources, regulatory bodies have responded positively to this initiative, opening up prospects for further development of digital financial instruments in China and beyond.
JD.com Chairman Richard Liu emphasized the importance of obtaining licenses in key jurisdictions to ensure the convenience of international transactions and enhance the competitiveness of the yuan on a global scale.
It is worth noting that similar initiatives are gaining popularity in Europe: it was recently announced that preparations are underway for the launch of the first regulated stablecoin in Germany, pegged to the euro.