The race for dominance in the global digital finance landscape is accelerating, and major Chinese tech players are positioning themselves at the forefront. At a recent industry forum, Richard Liu, chairman of JD.com, made a bold statement: “I hope that one day, when people shop anywhere in the world, JD’s stablecoin can serve as a reliable global payment method.”
This vision underscores a growing strategic shift among China’s internet giants toward blockchain-based financial innovation—particularly the development and deployment of stablecoins. On June 17, Liu revealed that JD Group plans to apply for stablecoin licenses across major currency jurisdictions worldwide. Just days earlier, Ant International announced its own ambitions, revealing plans to launch stablecoin operations in Hong Kong, Singapore, and Luxembourg, with Ant Digital Technologies already initiating the formal application process for a Hong Kong-issued stablecoin license.
But what exactly are stablecoins? And why are tech titans racing to secure regulatory approval in key markets?
Understanding Stablecoins: The Bridge Between Crypto and Real-World Finance
Stablecoins are not a new concept. Their origins trace back to 2014 with the introduction of RealCoin by Tether Limited—a digital asset designed to maintain a 1:1 peg with the U.S. dollar. Renamed USDT (Tether), it began trading on exchanges in February 2015 and quickly became one of the most widely used cryptocurrencies for trading and cross-border value transfer.
Since then, the stablecoin ecosystem has expanded significantly, with prominent alternatives like USDC, DAI, BUSD, and TUSD entering the market. According to Dr. Tian Xuan, Dean of Tsinghua University’s National Financial Research Institute and Vice Dean of PBC School of Finance, “A stablecoin is a type of cryptocurrency whose value is pegged to an external asset—such as fiat currency, commodities, or other crypto assets—or stabilized via algorithmic mechanisms to maintain price stability.”
Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins offer predictable value, making them ideal for practical applications including cross-border payments, remittances, and on-chain settlements. They function as a critical infrastructure layer within decentralized finance (DeFi), serving as both a medium of exchange and a unit of account.
Their adoption has surged over the past five years. CICC research indicates that stablecoin market capitalization has grown more than 40-fold since early 2020. By May 2025, total market value reached approximately $230 billion, reflecting increasing institutional confidence and real-world utility.
Why Stablecoins Are Gaining Momentum
Three core advantages explain the rising appeal of stablecoins in international commerce:
- Speed and Cost Efficiency: Traditional cross-border transactions through SWIFT often incur fees exceeding 6% and take several business days to settle. In contrast, stablecoin transfers typically cost less than 1% and complete within minutes.
- Risk Mitigation and Liquidity Enhancement: By reducing reliance on intermediary banks and legacy systems, stablecoins minimize counterparty risk and improve transaction transparency through blockchain’s immutable ledger.
- Support for RWA (Real World Asset Tokenization): As physical assets like real estate or bonds are increasingly tokenized on blockchain platforms, stablecoins act as the primary medium for transferring value between digital and traditional financial ecosystems.
Global trade trends further amplify this momentum. UNCTAD reports that global trade hit a record $33 trillion in 2024, up 3.7% year-on-year. Meanwhile, the World Trade Organization’s Goods Trade Barometer rose slightly to 102.8, signaling continued expansion.
Even more striking: data from South China University of Technology shows that stablecoins processed $27.6 trillion in transfers in 2024 alone—surpassing combined transaction volumes of Visa and Mastercard.
From Unregulated Growth to Regulatory Clarity
Despite their promise, stablecoins carry inherent risks—most notably demonstrated during two major market crises.
In April 2022, TerraUSD (UST), once the third-largest stablecoin, collapsed after losing its dollar peg amid broader market turmoil. Its sister token, Luna, plummeted nearly 99%, wiping out billions in investor value. The event exposed vulnerabilities in algorithmic stabilization models and triggered widespread calls for tighter oversight.
Then in 2023, Silicon Valley Bank’s collapse rattled confidence in centralized stablecoins. USDC, which held $3.3 billion in reserves at SVB, briefly dropped to $0.879 per token—its largest de-pegging event ever—leading to panic-driven redemptions and temporary market instability.
Dr. Tian Xuan identifies four primary risk categories:
- Regulatory uncertainty
- Technical security flaws
- Market volatility
- Operational liquidity shortfalls
To address these concerns, governments globally are building comprehensive regulatory frameworks.
In May 2025, Hong Kong enacted its Stablecoin Ordinance following years of consultation, establishing licensing requirements and reserve transparency rules. The law takes effect August 1, creating a clear pathway for firms like JD and Ant to operate legally.
On June 17, the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins)—a landmark piece of legislation aiming to create a federal framework for stablecoin issuance. While still requiring House approval and presidential signature, the bill marks a pivotal step toward legitimizing digital dollar initiatives.
Japan, Singapore, and the European Union have also advanced their own regulations, signaling the emergence of a coordinated global approach.
What Are JD and Ant Really Building?
Behind these moves lies a shared ambition: to become foundational players in next-generation financial infrastructure.
JD Blockchain Tech joined Hong Kong’s first Stablecoin Sandbox cohort in July 2024. Its proposed stablecoin will be backed 1:1 by fiat currencies like the Hong Kong or U.S. dollar. Currently in Phase Two testing, JD is piloting use cases in cross-border payments, retail transactions, and investment settlements—including integration with compliant exchanges and JD’s own Hong Kong/Macau e-commerce platforms.
Ant Digital Technologies has similarly advanced its Hong Kong license application through multiple rounds of regulatory dialogue. With Hong Kong designated as its global blockchain hub, Ant has already completed sandbox trials and is preparing full-scale deployment upon regulatory clearance.
Ant International is also pursuing licenses in Singapore and Luxembourg, positioning itself for pan-regional operations across Asia and Europe.
Dr. Tian emphasizes that securing licenses allows companies to:
- Operate compliantly under clear legal frameworks
- Gain first-mover advantage in emerging markets
- Expand into high-growth sectors like DeFi and asset tokenization
- Build trust through audited reserves and transparent governance
Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar or gold. It combines blockchain efficiency with price predictability.
Q: How do stablecoins differ from Bitcoin?
A: While Bitcoin is highly volatile and functions more like digital gold or speculative asset, stablecoins aim for price stability and are used primarily for payments, remittances, and DeFi transactions.
Q: Are stablecoins safe?
A: Safety depends on transparency, regulation, and collateralization. Regulated stablecoins backed by real assets (like USDC or future Hong Kong-licensed tokens) are generally considered safer than algorithmic or undercollateralized versions.
Q: Can I use stablecoins for everyday purchases?
A: Yes—especially in regions with developed crypto infrastructure. Companies like JD are actively integrating stablecoins into retail payment systems, particularly for cross-border shopping.
Q: Why do big tech companies want to issue stablecoins?
A: It enables them to control payment rails, reduce transaction costs, capture new revenue streams, and integrate financial services into existing platforms—from e-commerce to wealth management.
Q: Will Chinese stablecoins work globally?
A: If issued under internationally recognized regulatory standards (e.g., Hong Kong or EU frameworks), they can achieve broad interoperability—provided they comply with local anti-money laundering (AML) and know-your-customer (KYC) rules.
The convergence of e-commerce, blockchain technology, and financial regulation is redefining how value moves around the world. With JD and Ant leading the charge from Asia, the stage is set for a new era of borderless, efficient, and trusted digital transactions.
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