Ant Group and JD.com suspend stablecoin projects after China warning
Chinese technology giants, including Ant Group and JD.com, have suspended their plans to issue stablecoins in Hong Kong after regulators in Beijing voiced concerns over the growing influence of privately issued digital currencies. According to several sources familiar with the matter, authorities such as the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) have advised major tech companies to temporarily refrain from pursuing stablecoin-related initiatives.
As reported by the Financial Times, citing people familiar with the situation, representatives of the PBoC discouraged participation in Hong Kong’s pilot stablecoin program, citing risks associated with allowing private enterprises to create or manage currency-like assets. One source said that Beijing views privately issued stablecoins as a potential threat to the central bank’s own digital yuan (e-CNY) project. Another person summarized the key concern: “The real regulatory concern is, who has the ultimate right of coinage — the central bank or any private companies on the market?”
Global oversight and policy divide
Stablecoins — cryptocurrencies pegged to traditional fiat currencies such as the U.S. dollar — have become a focal point for regulators worldwide. Their growing importance in global finance has sparked debates among central bank leaders. The European Central Bank warned that widespread use of dollar-backed stablecoins could undermine local monetary control, while in the United States, early political support positioned stablecoins as instruments of financial influence.
The Hong Kong Monetary Authority (HKMA) began accepting applications for stablecoin issuers in August, positioning the city as a potential bridge between mainland China and international crypto markets. Initially, Chinese companies saw this as an opportunity to experiment with yuan-backed tokens, which some officials believed could enhance the renminbi’s international standing.
Shift toward caution
Despite the initial enthusiasm, sentiment shifted after former PBoC governor Zhou Xiaochuan called for restraint during a financial forum in July. “We need to be vigilant against the risk of stablecoins being excessively used for asset speculation, as misdirection could trigger fraud and instability in the financial system,” Zhou said at the China Finance 40 Forum. He also urged a “careful assessment of the true demand of tokenisation as a technological foundation.”
Former vice-minister of finance Zhu Guangyao had earlier highlighted the strategic importance of stablecoins, stating in June that “the strategic purpose behind the U.S. promotion of stablecoins is to preserve dollar supremacy.”
However, following Zhou’s remarks, regulators reportedly adopted a more cautious stance, effectively freezing the development of private stablecoin projects in Hong Kong.
See also: OpenSea shifts toward tokens, SEA launch set for 2026
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