Ant Group and JD.com have put their stablecoin projects on hold in Hong Kong, a decision that comes in the wake of increased scrutiny from Chinese regulators regarding digital currency control. The People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) have reportedly directed these tech giants to suspend their initiatives, underscoring Beijing’s cautious stance towards the involvement of private companies in offshore digital asset activities.
Initially, Ant Group and JD.com were keen on launching stablecoin-related services and tokenized financial products in Hong Kong. However, following direct instructions from mainland authorities, these plans have been shelved. Sources indicate that the key concern for regulators revolves around the ultimate authority for issuing digital currencies: should it rest with the central bank or private companies?
According to insiders, the regulatory pushback from Beijing indicates a clear message: any private participation in currency issuance, even outside mainland China, remains under stringent oversight. This regulatory framework reflects broader apprehensions about maintaining control over financial infrastructures and digital currency systems.
Hong Kong’s stablecoin initiative, which began accepting applications from issuers in August 2025, aimed to solidify the city’s position as a hub for digital finance. Initially viewed as a promising testing ground for renminbi-pegged stablecoins and tokenized products, the initiative has faced significant headwinds following concerns raised by both Hong Kong and mainland regulators.
Ye Zhiheng, executive director at the Hong Kong Securities and Futures Commission (SFC), has expressed concerns regarding the increased risk of fraud associated with the stablecoin framework. His warning came after reports of losses incurred by firms engaged in stablecoin activities shortly after the regulatory guidelines were implemented.
While Hong Kong seeks to establish itself as a global digital asset hub, the regulatory environment in China indicates a reluctance to allow private companies to fully enter this space. The suspension of stablecoin projects is part of a broader trend, as the China Securities Regulatory Commission (CSRC) has also instructed local brokerages to halt real-world asset tokenization activities in Hong Kong. This tightening of oversight reflects Beijing’s efforts to delineate the boundaries for Chinese firms exploring tokenized finance.
Moreover, recent reports suggested that Beijing had imposed limits on Hong Kong’s stablecoin initiatives, although an article detailing these measures was quickly removed, highlighting the sensitivity of the issue.
Despite the regulatory challenges, tokenization efforts in Hong Kong have not ground to a halt. A notable development saw China Merchants Bank’s Hong Kong subsidiary, CMB International Asset Management (CMBI), successfully tokenize its $3.8 billion money market fund on the BNB Chain. This indicates that while private stablecoin issuance may be facing obstacles, there remains potential for other forms of digital asset innovation, especially when spearheaded by state-linked financial institutions.
The situation is evolving, but for now, the involvement of Chinese tech giants in stablecoin development in Hong Kong is on pause, reflecting ongoing regulatory caution from Beijing.
