TLDR
- Ant Group and JD.com paused stablecoin plans in Hong Kong after Beijing stepped in.
- China’s central bank questioned private firms’ rights to issue digital coins.
- Hong Kong’s stablecoin program saw delays after fraud risk warnings in August.
- China also told brokerages to stop tokenizing real-world assets in Hong Kong.
Ant Group and JD.com have paused their stablecoin projects in Hong Kong. This decision follows concerns raised by Chinese regulators over digital currency control. The People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) reportedly directed the companies to suspend their efforts. These moves suggest that Beijing is taking a cautious approach toward offshore digital asset activities involving private companies.
Regulatory Pushback from Beijing
Ant Group and JD.com had shown interest in launching stablecoin-related services and tokenized financial products in Hong Kong. However, they have now halted these plans due to direct instructions from mainland authorities. Sources told the Financial Times that the core issue for regulators was who holds the ultimate authority to issue digital currencies.
“The real regulatory concern is, who has the ultimate right of coinage — the central bank or any private companies on the market?” a source familiar with the discussions told FT.
China’s central bank and cyberspace agency reportedly made it clear that any private involvement in currency issuance, even outside the mainland, remains under strict oversight. This regulatory stance appears to reflect a broader concern about maintaining control over financial infrastructure and digital money systems.
Hong Kong’s Stablecoin Initiative Slows
Hong Kong began accepting applications for stablecoin issuers in August 2025, as part of efforts to strengthen its role in the digital finance space. The city had initially positioned itself as a testing ground for renminbi-pegged stablecoins and other tokenized products.
Several mainland-linked firms, including Ant Group and JD.com, had considered joining this pilot program. However, the momentum behind the initiative slowed after concerns were raised by both Hong Kong and mainland regulators.
Ye Zhiheng, executive director of the intermediaries division at the Hong Kong Securities and Futures Commission (SFC), recently warned that the stablecoin framework increases fraud risk. His comments came after some firms involved in stablecoin activities posted losses soon after the rules came into force.
Private Digital Currency Plans Face Limits
While Hong Kong seeks to position itself as a global digital asset hub, China’s regulators appear less comfortable with private companies entering this space. The suspension of stablecoin efforts is not the only move pointing in this direction.
Reports suggest that the China Securities Regulatory Commission (CSRC) also instructed local brokerages to pause real-world asset tokenization activities in Hong Kong. Though these actions relate to offshore markets, Beijing appears to be drawing lines around how far Chinese firms can go in exploring tokenized finance.
Additionally, an article by Caixin in September reported Beijing had placed limits on Hong Kong’s stablecoin initiatives, though the article was taken down shortly after. This further points to the sensitive nature of the subject.
Tokenization Progress Continues in Other Areas
Despite the pushback, tokenization activity in Hong Kong has not come to a full stop. In a recent development, China Merchants Bank’s Hong Kong subsidiary, CMB International Asset Management (CMBI), tokenized its $3.8 billion money market fund on BNB Chain.
This indicates that while private stablecoin issuance faces challenges, there may still be space for other types of digital asset innovation — particularly when led by state-linked financial institutions.
The situation remains fluid, but for now, the involvement of Chinese tech giants in stablecoin development in Hong Kong is on hold, reflecting ongoing regulatory caution from Beijing.
