• JD.com and Ant Group push for yuan-backed stablecoin in Hong Kong
• Over 99% of stablecoins tied to USD—China wants to change that
Paradisers! When two of China’s tech titans start lobbying for a yuan-pegged stablecoin, it’s not just about payments—it’s about power. And this time, USDT is in the crosshairs.
The Rise of Digital Trade—And the USD’s Iron Grip
Right now, Tether’s USDT dominates 68.2% of the global stablecoin market, and over 99% of all stablecoins are USD-pegged. Chinese exporters—even under tight capital controls—are quietly using USDT to settle international deals. Why? Because it bypasses currency risk and regulatory friction.
But JD.com and Ant Group aren’t content with that. With Hong Kong’s new Stablecoin Ordinance taking effect August 1, they’re preparing to launch Hong Kong dollar-backed stablecoins—while also pushing Beijing to approve a yuan-based alternative.
Their pitch is clear: if China wants to challenge the dollar’s digital dominance, it needs to start with its own stablecoin.
From Crypto Ban to Stablecoin Strategy
Yes, China officially banned cryptocurrencies in 2021. But behind the scenes, cross-border payment infrastructure is quietly being reshaped. The People’s Bank of China (PBoC) is now entertaining stablecoin proposals, as long as they’re tightly regulated and strategically aligned with state goals.
A yuan-pegged stablecoin, issued in Hong Kong but compliant with China’s capital regime, could be the first real challenge to USDT in global trade flows. Think of it as CBDC-lite—but for the private sector.
Why This Matters for Traders
If approved, this move won’t just impact trade—it could eventually reprice risk across stablecoin pairs, shift on-chain liquidity flows, and even reshape regional FX dynamics in Asia.
And remember what we said on our last MCP YouTube stream:
Smart money is aggressively repositioning into long-term crypto narratives—and FX tokenization is high on that list.
The Real Alpha Is What Happens Next
While headlines debate stablecoin approvals, we’re already unpacking what this yuan move means for liquidity providers, BTC/USDT peg volatility, and trading setups.
For just $3/month, you can join MCP News Private and get the full breakdown of how this move could flip Asia’s digital asset game.
Watch the latest stream on the MCP YouTube channel, where we explained the macro chessboard shaping up behind Bitcoin and stablecoins. Because trading without understanding the capital flows is just noise.
USDT is still king—but kings get challenged.
The next regime might be minted in Hong Kong.