China Orders Ant Group, JD.com to Halt Stablecoin Plans
Beijing Blocks Private Stablecoin Projects
Chinese technology groups Ant Group and JD.com have suspended plans to issue stablecoins in Hong Kong later than regulators in Beijing raised concerns about privately controlled digital currencies, according to the Financial Times.
Sources told the paper that the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed both companies to halt their initiatives. “The real regulatory concern is, who has the ultimate right of coinage — the central bank or any private companies on the market?” one person familiar with the discussions said.
Both firms had expressed interest earlier this year in joining Hong Kong’s stablecoin pilot program or in issuing such as digital bonds. The pause underscores Beijing’s unease over digital currencies issued outside the state’s control, even in semi-autonomous Hong Kong, where local regulators had been promoting new frameworks for licensed stablecoin issuers.
Investor Takeaway
Hong Kong’s Stablecoin Push Faces Pressure
Hong Kong began accepting applications for stablecoin issuers in August under its new regulatory framework, which criminalizes unlicensed promotions and establishes a public registry of approved issuers. Mainland officials had initially viewed the program as a vehicle to promote renminbi-pegged stablecoins and extend the yuan’s use abroad.
But enthusiasm faded later than Ye Zhiheng, executive director of intermediaries at the Securities and Futures Commission (SFC), warned that the new regime had increased fraud risk. Stablecoin firms active in Hong Kong reported double-digit losses on Aug. 1, the day the rules came into force.
Last month, Chinese outlet Caixin reported that Beijing had imposed limits on Hong Kong’s stablecoin operations, though the report was removed soon later than publication. The disappearance fueled speculation that the restrictions reflected direct intervention from mainland authorities rather than local regulators acting independently.
Shift in Beijing’s Tokenization Policy
Beijing’s stance on experiments has cooled in recent weeks. The China Securities Regulatory Commission (CSRC) reportedly instructed several local brokerages to suspend real-world asset (RWA) tokenization projects in Hong Kong, reflecting concerns over rapid offshore expansion of blockchain-based finance.
The move followed a series of high-profile tokenization initiatives, including CMB International Asset Management’s launch of a tokenized $3.8 billion money-market fund on BNB Chain. CMBI is a Hong Kong-based unit of China Merchants Bank, one of the mainland’s largest commercial lenders. The project was viewn as a milestone in and blockchain-based markets before regulatory pressure intensified.
Investor Takeaway
Future of Hong Kong’s Digital Asset Ambitions
China’s latest intervention could undermine Hong Kong’s effort to present itself as a regulated hub for digital finance. The city’s stablecoin framework, introduced on Aug. 1, was designed to balance consumer protection with innovation, but the pullback by Ant and JD.com signals a loss of confidence among some of the region’s largest players.
The episode also reflects Beijing’s broader policy direction — promoting the digital yuan (e-CNY) while restricting privately issued alternatives. Without support from major mainland institutions, Hong Kong’s stablecoin ecosystem could struggle to attract large issuers and institutional liquidity.
For now, the message from Beijing is that the power to create and manage digital money rests with the state, not the market. Whether Hong Kong can pursue a parallel path of regulated innovation under that constraint remains to be viewn.
