Two of China’s main know-how gamers, Ant Group and JD.com, have put their ambitions to concern stablecoins in Hong Kong on maintain, following clear indicators from Beijing that such private-sector foreign money issuance could also be off-limits for now.
Over the summer season, each corporations had proven curiosity in becoming a member of Hong Kong’s new pilot programme for fiat-backed tokens. Ant had introduced plans to use for a licence to concern stablecoins within the territory as soon as its licensing regime got here into impact on Aug.1.
JD.com, too, was reported to be lobbying for an offshore yuan-oriented stablecoin through Hong Kong.
Hong Kong’s Stablecoin Goals Face Mainland Resistance
Nevertheless, the temper has shifted. The Monetary Instances reported Sunday that officers on the Folks’s Financial institution of China (PBoC) and the Our on-line world Administration of China (CAC) instructed the corporations to pause or abandon strikes to concern or again stablecoins from Hong Kong.
In accordance with FT, Alibaba’s Ant Group and JD com have paused their plans to concern stablecoins in Hong Kong after receiving directions from Chinese language regulators, together with the PBOC and CAC, to halt the tasks. Hong Kong handed a Stablecoin Invoice in Might establishing a licensing…
— Wu Blockchain (@WuBlockchain) October 19, 2025
Their principal fear is that if giant tech corporations or brokerages start issuing tokens that operate like foreign money, it might weaken the central financial institution’s authority. One particular person instructed the FT that regulators are centered on guaranteeing that the appropriate to concern cash stays solely with the state, not personal corporations.
Hong Kong’s stablecoin licensing regime had created a brand new frontier. The territory’s de facto central financial institution, the Hong Kong Financial Authority (HKMA), rolled out the framework after laws was handed in Might, opening a channel for token-issuers backed by fiat foreign money.
Officers Shift From Enthusiasm To Restraint On Hong Kong Stablecoins
Some officers in mainland China initially noticed the programme as an opportunity to broaden the renminbi’s attain past nationwide borders. They believed that yuan-pegged stablecoins issued via Hong Kong might assist counter the dominance of US dollar-backed tokens worldwide.
Nevertheless, that optimism pale by late August. At a closed-door discussion board, former PBoC governor Zhou Xiaochuan urged a extra cautious method. He warned that stablecoins might simply change into automobiles for hypothesis and even fraud. He additionally questioned whether or not they actually added worth to on a regular basis retail funds.
By then, Beijing’s tone had clearly shifted. Regulators started prioritising monetary stability and state management over speedy innovation within the digital foreign money house.
Tug Of Battle Emerges Between Hong Kong’s Openness And Beijing’s Management
Regulators made it clear that personal corporations issuing currency-like tokens should yield to China’s precedence of preserving financial management. Innovation, of their view, can’t come at the price of sovereignty.
For Ant and JD.com, the timing couldn’t be extra delicate. In June, Ant introduced plans to use for a stablecoin licence. But by mid-October, each corporations had quietly stepped again, following Beijing’s steerage to pause.
The transfer captures a rising pressure between Hong Kong’s push to construct a world digital asset hub and Beijing’s choice for restraint. Whereas Hong Kong continues to simply accept purposes, authorities have already cautioned that only some licences shall be accredited at first, and solely after rigorous scrutiny.
The publish China’s Ant, JD.com Hit Pause on Hong Kong Stablecoin Plans After Beijing Warning appeared first on Cryptonews.