TLDRs;
- Beijing reportedly instructed Ant Group and JD.com to pause their Hong Kong stablecoin plans amid regulatory concerns.
- The PBoC sees private stablecoins as a potential threat to the digital yuan’s dominance.
- Hong Kong’s stablecoin licensing regime, active since August 2025, still has no approved issuers.
- Beijing’s move reinforces its preference for state-backed CBDCs like mBridge over private crypto systems.
Two of China’s largest technology firms, Ant Group and JD.com, have put their Hong Kong stablecoin plans on hold after Chinese regulators voiced concerns over private sector involvement in digital currency issuance.
The move, reportedly guided by the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC), reflects Beijing’s tightening stance on the expanding influence of private digital assets.
The suspension follows an internal review triggered by regulatory instructions from Beijing, which maintains that currency issuance must remain under state control. The decision effectively halts the companies’ ambitions to issue fiat-pegged stablecoins in Hong Kong’s newly established licensing regime.
Both Ant Group, backed by Alibaba, and e-commerce giant JD.com, had been exploring opportunities to issue stablecoins or digital asset-backed products under Hong Kong’s August 2025 stablecoin framework, but no formal licenses were granted.
China’s Digital Yuan Takes Center Stage
According to sources close to the matter, Beijing’s hesitation stems from fears that private stablecoins could rival or undermine its state-backed digital currency, the e-CNY. The PBoC has long promoted the digital yuan as the official alternative to private crypto assets, ensuring government oversight over monetary flows and data transparency.
“The core issue here is who controls the right to issue currency,” said one individual familiar with the regulatory thinking. “Private stablecoins, even if compliant, risk creating parallel money systems beyond state control.”
The move comes amid the global debate over stablecoins’ impact on monetary sovereignty. While regulators in regions such as the European Union and United States have advanced legal frameworks for private issuers, China’s model prioritizes centralized, state-led digital currency infrastructure.
Beijing’s approach aligns with its broader financial technology policy, allowing innovation, but only under strict state supervision.
Hong Kong’s Ambitions Face Setback
The pause also dampens Hong Kong’s efforts to establish itself as a regional crypto and fintech hub. The Hong Kong Monetary Authority (HKMA) launched its stablecoin licensing regime on August 1, 2025, yet no company has received approval so far.
Hong Kong regulators designed the framework to balance innovation with oversight, particularly for issuers of asset-backed or algorithmic stablecoins. However, without mainland participation, the city’s ambition to serve as a bridge between Chinese and international finance faces hurdles.
Analysts say the setback is largely symbolic, as no mainland firm had yet progressed beyond exploratory talks. Still, the decision sends a clear message about China’s preference for state-owned digital currency rails, including Project mBridge, a cross-border central bank digital currency (CBDC) initiative involving Hong Kong, Thailand, the UAE, and China.
Global Implications and Market Outlook
JPMorgan Chase analysts recently noted that nearly 99% of stablecoins in circulation are pegged to the US dollar, reinforcing American monetary dominance in global finance. The bank projected the stablecoin market could reach between $500 billion and $2 trillion in coming years.
That trend, Beijing fears, could amplify dollar dependence at the expense of the yuan. Former Vice Finance Minister Zhu Guangyao earlier this year urged China to explore a yuan-backed stablecoin to strengthen the currency’s international profile. But former PBoC governor Zhou Xiaochuan later cautioned against speculative expansion, calling for a measured approach to digital asset innovation.
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