China’s Big Tech Wants Yuan Stablecoin to Break USDT’s Lead

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Two of China‘s biggest tech firms, JD.com and Alibaba’s Ant Group, are urging the countrys central bank to allow a yuan-based stablecoin to launch in Hong Kong, sources told Reuters.

The goal？ Push back against the rising dominance of U.S. dollar stablecoins like USDT and bring the Chinese yuan into the digital payments race.

Things are heating up. Read on to know more.

Chinas Big Players Are Making Their Move

JD.com and Ant Group are reportedly in talks with the Peoples Bank of China (PBOC), calling for the approval of a yuan-pegged stablecoin outside the mainland. Both companies already have plans to issue HKD-backed stablecoins once Hong Kongs new crypto rules kick in on August 1.

But they say thats not enough. Since the Hong Kong dollar is tied to the U.S. dollar, it does little to promote the yuan internationally, something Beijing has been aiming for over the last decade.

JD.com has made it clear in closed-door discussions that an offshore yuan stablecoin is needed urgently to support the currencys global use, especially as dollar-backed digital assets continue to dominate.

USDT Is Winning the Digital Trade Game

Theres no denying it: the dollar is miles ahead in the stablecoin space. According to the Bank for International Settlements, over 99% of all stablecoins in circulation are backed by the U.S. dollar.

Chinese exporters are already shifting toward USDT for international payments, sidestepping currency risk and capital controls. Hong Kong-based OTC exchange Crypto HK said USDT trading volumes among Chinese clients have jumped five times since 2021.

said Wang Yongli, former vice head of the Bank of China.

Beijings Digital Currency Dilemma

China has been clear about its long-term goal – to make the yuan a strong global currency like the dollar or euro. But capital controls, policy roadblocks, and its ban on crypto in 2021 have held it back.

Now, the numbers are starting to reflect that. The yuans share in global payments fell to 2.89% in May, while the U.S. dollar still holds over 48%, according to SWIFT data.

said Xiao Feng, chairman of Hong Kong-based crypto exchange HashKey.

US Moves Fast – Can China Catch Up？

In the U.S., the stablecoin space is gaining regulatory support. President Donald Trump backed stablecoins shortly after returning to office, and his administration is now building a clear legal framework around them.

Meanwhile, Hong Kong is speeding up crypto regulations, creating a competitive environment that could become a launchpad for China‘s digital currency efforts, without breaking the mainland’s crypto ban.

Ant Group is reportedly preparing license applications for stablecoin operations in both Hong Kong and Singapore, and JD.com is planning to apply in several key global markets.

The Bigger Picture

This push is clearly about protecting Chinas role in the future of global finance.

If Beijing allows a yuan stablecoin to launch in Hong Kong, it could mark a shift in how China approaches digital assets and open the door to broader use of the yuan in cross-border trade.

With the U.S. leading the digital dollar movement, Chinas window to act is narrowing. The stablecoin race is on, folks!