Ant Group and JD.com have suspended their stablecoin plans. According to the Financial Times, several informed sources revealed that the Chinese government has intervened to slow down the stablecoin issuance plans of several tech giants, including Ant Group and JD.com (9618), in Hong Kong. Ant Group is an affiliate of e-commerce giant Alibaba (9988), while JD.com is one of China's largest retailers.
Before the new stablecoin licensing system in Hong Kong took effect, both companies urged the People's Bank of China (PBoC) in closed-door meetings to approve the issuance of stablecoins pegged to the Chinese yuan.
Ant Group and JD.com Suspend Stablecoin Plans Amid Concerns from PBoC Officials
However, according to the Financial Times, the regulatory intervention by the PBoC and the Cyberspace Administration of China has led these two companies to pause their stablecoin plans. Five sources indicated that PBoC officials expressed concerns about private enterprises issuing any type of currency, noting that privately operated stablecoins could pose a challenge to China's central bank digital currency—the digital yuan (e-CNY).
At a closed-door financial forum at the end of August, PBoC Governor Zhou Xiaochuan voiced concerns about the stability of stablecoins. He pointed out, "The central bank currently faces at least two concerns. The first is excessive currency issuance, which occurs when stablecoins are issued without a 100% reserve requirement, a phenomenon known as over-issuance. The second is high leverage, which refers to the multiplier effect of currency derivatives generated post-issuance." Zhou emphasized that while the U.S. GENIUS Act and Hong Kong's stablecoin regulations have addressed these issues, controls remain significantly inadequate.
According to data from the Hong Kong Monetary Authority, Ant Group and JD.com are among the 77 companies expressing interest in applying for stablecoin licenses in Hong Kong. Despite cautious regulatory actions in mainland China, Hong Kong authorities continue to position the region as a space for crypto development, similar to a regulatory sandbox.
Chinese Regulators Slow Down Tokenization of Real Assets in Hong Kong
Recently, Chinese regulators have also intervened to slow down the tokenization of real assets in Hong Kong, advising some top brokers to pause their plans. Additionally, regulators requested major brokers to stop publishing research reports supporting stablecoins in August.
The regulatory environment in Hong Kong initially appeared ready to facilitate the issuance of stablecoins. In May 2025, the region enacted legislation to establish licensing rules for fiat-backed stablecoin issuers, showcasing its ambition to become a digital asset hub in Asia. However, recent developments indicate that central authorities in mainland China continue to exert significant influence over tech companies' digital currency initiatives.
This decision marks a shift in China's perspective on stablecoins and private digital asset initiatives. While tokenization and fintech innovation remain high priorities, this move underscores Beijing's stringent control over digital currency issuance.