China Firms Eyes Stablecoin For International Market While China Tightens Crypto Regulations

Chinese fintech heavyweight Ant Group has officially denied widespread online speculation claiming it is working with the People’s Bank of China (PBoC) on a rare earth–backed RMB stablecoin project.

Over the weekend, Ant Group addressed the matter on Weibo, stating that recent online articles have misled investors by falsely suggesting such a collaboration is underway.

“Ant Group has never had any such plans with related institutions. We urge the public to stay vigilant and avoid being misled.”

This strong denial comes as increased interest in stablecoin technology grows among Chinese companies, while China's strict stance on stablecoins keeps such projects strictly outside of mainland China.

Recently, Chinese authorities announced a fresh regulation that prohibits any form of research or public discourse on stablecoin, citing concerns that stablecoins could be exploited for fraudulent activities.

Mainland China continues to enforce a strict prohibition on crypto trading, citing financial regulatory risks and economic stability. Nonetheless, overseas opportunities are drawing Chinese corporate attention.

Edwin Cheung, CEO of Gate Dubai and former executive at Gate HK, revealed that mainland firms are particularly excited about Hong Kong’s newly implemented stablecoin framework.

“A lot of e-commerce firms are very enthusiastic about the Hong Kong regime. They see an opportunity to create their own stablecoin or use stablecoin and blockchain technology to streamline payment systems across their businesses.”

As Hong Kong introduced its highly anticipated licensing regime for fiat-referenced stablecoins on August 1, the city moved to establish itself as a leading global hub for digital asset innovation.

Under the new law, any entity intending to issue or promote stablecoins to Hong Kong’s retail market must first secure a license from the Hong Kong Monetary Authority, ensuring rigorous standards for compliance, reserve management, and investor protection.

Ant Group remains active in blockchain development. It has disclosed plans to integrate Circle’s USDC stablecoin into its blockchain platform once USDC becomes fully compliant in the U.S. under the GENIUS Act.

The company has also considered launching its own stablecoin backed by the Hong Kong dollar. Many other major Chinese players are also pushing forward with international stablecoin initiatives.

JD.com announced in June that it is pursuing stablecoin licenses in several jurisdictions to cut costs and increase speed for cross-border payments.

The retail giant is starting its efforts with business-to-business solutions, but expects to broaden into the consumer space over time.