The launch of Hong Kong’s Stablecoin Ordinance on August 1, 2025, has triggered a strategic push by major tech and financial players—including JD.com and Ant Group—to enter the rapidly evolving stablecoin market. This regulatory milestone marks a turning point in the global digital currency landscape, positioning Hong Kong as a key hub for compliant stablecoin issuance and innovation.
What Are Stablecoins?
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to real-world assets—typically fiat currencies like the US dollar or euro, but sometimes commodities such as gold. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins offer price stability, making them ideal for everyday transactions, remittances, and cross-border payments.
First introduced in 2014, stablecoins gained mainstream traction during the 2020–2023 crypto boom. At that time, the global stablecoin market was valued at just $200 billion. Since then, adoption has surged due to two primary drivers:
- Dominance in crypto trading: Over 90% of Bitcoin trades are settled using USDT (Tether) or USDC, establishing stablecoins as the de facto "digital dollar" within blockchain ecosystems.
- Financial inclusion in emerging markets: In countries facing currency instability—such as Argentina or Nigeria—stablecoins have become a vital tool for preserving wealth, accounting for up to 72% of local crypto trading volume.
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JD.com’s Global Stablecoin Ambition
JD.com, one of China’s largest e-commerce platforms, is preparing to apply for stablecoin licenses in key jurisdictions worldwide. The company sees stablecoins as a transformative force in enterprise finance, particularly in reducing cross-border transaction costs and settlement times.
According to Liu Qiangdong, founder of JD.com, the company aims to cut international payment fees by up to 90%, with transaction speeds improving to under 10 seconds. These gains would be achieved through tokenized settlement systems powered by blockchain and regulated stablecoin infrastructure.
JD Chain, JD’s blockchain subsidiary and a participant in Hong Kong’s Stablecoin Issuer Sandbox, emphasized its commitment to regulatory compliance. “The Ordinance formalizes stablecoins within a legal framework,” a spokesperson said. “We’re working closely with the Hong Kong Monetary Authority (HKMA) and other global regulators to ensure our stablecoin operations meet all compliance standards.”
This move aligns with JD’s broader strategy to digitize supply chain finance and expand its international B2B payment network.
Ant Group Joins the Stablecoin Race
Ant Group’s international arm, Ant International, announced on June 12 that it will submit its Hong Kong stablecoin license application as soon as regulatory pathways open. The company is investing heavily in treasury management technologies and forming strategic partnerships to scale its AI-driven blockchain solutions.
Ant’s vision integrates artificial intelligence, distributed ledger technology, and regulated digital currencies to build a seamless cross-border payment ecosystem. By leveraging stablecoins, Ant aims to streamline remittances, trade finance, and microtransactions across Southeast Asia, the Middle East, and Africa.
“We believe stablecoins can unlock significant efficiency gains in global commerce,” an Ant International representative stated. “Our focus is on deploying these innovations at scale while maintaining full alignment with regulatory expectations.”
Broader Market Participation: Beyond Tech Giants
While internet titans lead the charge, the stablecoin ecosystem includes diverse participants:
- Payment providers like Lakala and LianLian Digital
- Banks, including渣打 Hong Kong via its joint venture
- E-commerce platforms such as Xiao商品 City, operator of the world’s largest small commodities marketplace
Lakala recently announced plans to list its shares in Hong Kong (H-share IPO), a move analysts interpret as positioning for future fintech expansion—including potential stablecoin integration.
Meanwhile, Xiao商品 City highlighted the natural synergy between its high-volume cross-border trade environment and digital payment innovation. Its payment platform, Yiwu Pay, is actively monitoring regulatory developments and preparing to apply for a license once conditions allow.
“Stablecoins could provide SMEs and global traders with faster, cheaper settlement options,” the company said in a public statement. “We support Hong Kong’s progressive regulatory approach and are ready to contribute to responsible innovation.”
Regulatory Framework: Hong Kong Leads the Way
Hong Kong has emerged as a frontrunner in stablecoin regulation alongside the United States. Under the new Stablecoin Ordinance, the Hong Kong Monetary Authority (HKMA) oversees all stablecoin issuers through a strict licensing regime.
Key requirements include:
- Full reserve backing: The value of reserves must equal or exceed the total issued stablecoins
- High liquidity and low-risk asset composition (e.g., cash, short-term government bonds)
- Regular audits and public disclosure
To foster innovation while ensuring safety, the HKMA launched a Stablecoin Issuer Sandbox in 2024. Initial participants include:
- JD Chain Technology
- OSL’s Circle Innovation
- ZA Bank (a joint venture involving Standard Chartered, Animoca Brands, and Hong Kong Telecom)
This sandbox allows selected firms to test their models under close supervision before full licensing.
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Market Outlook: Stablecoin Supply Set to Surpass $1 Trillion by 2025
David Pakman, Partner at CoinFund—a leading crypto-native investment firm—predicts that global stablecoin supply could exceed $1 trillion by the end of 2025. He views this milestone as a potential catalyst for broader financial system transformation.
“Stablecoins are no longer niche tools for crypto traders,” Pakman said. “They’re becoming foundational infrastructure for modern finance—especially in trade, remittances, and programmable money.”
Despite this momentum, experts caution that the industry remains in its early stages. Challenges include interoperability, regulatory fragmentation across jurisdictions, and consumer protection frameworks.
Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency pegged to a stable asset like the US dollar or gold. It combines the speed and accessibility of digital currencies with minimal price volatility.
Q: Why are tech companies interested in stablecoins?
A: Stablecoins enable faster, cheaper cross-border payments and open new revenue streams in financial services. For e-commerce and fintech firms, they reduce friction in global transactions.
Q: How does Hong Kong regulate stablecoins?
A: The HKMA requires licensed issuers to hold full reserves in low-risk assets and undergo regular audits. The Stablecoin Ordinance enforces transparency and financial integrity.
Q: Can anyone issue a stablecoin in Hong Kong?
A: No. Only entities granted a license by the HKMA can issue regulated stablecoins. Unauthorized issuance is illegal.
Q: Are stablecoins safe?
A: Regulated stablecoins backed by real assets and subject to audits are generally considered safe. However, unregulated or poorly backed versions carry risks.
Q: Will stablecoins replace traditional banking?
A: Not immediately. Instead, they’re likely to complement existing systems by improving efficiency in areas like remittances and trade finance.
Final Thoughts: A New Era of Digital Finance
The race among internet giants to secure stablecoin licenses reflects a broader shift toward tokenized finance. As regulations mature and infrastructure develops, stablecoins are poised to become essential tools in global commerce.
With companies like JD.com and Ant Group leading the charge—and platforms like Yiwu Pay following close behind—the integration of stablecoins into real-world economies is accelerating. Backed by strong regulation and growing demand for efficient digital payments, this evolution promises greater financial inclusion and lower transaction costs worldwide.
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