Chinese technology giants, including Ant Group and JD Technology, have been in intensive discussions with the Hong Kong Monetary Authority (HKMA) since early 2025 to secure approval for yuan-based stablecoins that would promote the Chinese currency's global usage in the digital economy. The companies' proposals aim to issue yuan-backed digital tokens under Hong Kong's cryptocurrency regulatory framework, which released new regulatory guidance in June 2025, and this initiative directly aligns with Beijing's ambition to increase the Chinese yuan's international presence and reduce dependence on the dollar.
The HKMA-supervised programme is exploring various models for CNH-based (Chinese yuan traded on offshore markets) stablecoin issuance, while Chinese authorities—including the People's Bank of China and the China Securities Regulatory Commission—actively monitor the process without direct involvement. Besides Ant Group and JD Technology, other major corporations such as Tencent and ByteDance, along with numerous smaller fintech firms, have joined the initiative, collectively submitting over ten CNH-stablecoin proposals to Hong Kong authorities. Most stablecoin projects focus on commercial applications that could enter testing phases by late 2025, and the approval process is expected to take 6-9 months.
The Hong Kong stablecoin initiative represents a significant milestone in China's digital finance strategy, running parallel to the development of the digital yuan (e-CNY), which has been operational in mainland China since 2022 and already boasts over 120 million individual user wallets. International market experts, including analysts at Citibank, suggest that introducing CNH-stablecoins could increase Chinese yuan usage in international trade transactions by 10-15% from the current 7% over the next five years, while also supporting Hong Kong's Crypto Hub ambitions, which already permitted spot bitcoin and ethereum exchange-traded funds to launch in 2024.
Sources:
JD.com and Ant Group are urging China’s central bank to authorize yuan-based stablecoins issued in Hong Kong, aiming to boost international use of the currency and counter the dominance of U.S. dollar-linked digital currencies :contentReference[oaicite:0]{index=0}.
Mikaia ANDRIAMAHAZOARIMANANA
