Amid growing geopolitical tensions and the desire to move away from dollar dependence, leading Chinese technology companies are actively developing their own digital alternative. Giants such as JD. com and Ant Group have moved from words to deeds, officially applying to the People's Bank of China (PBOC) for permission to issue yuan-backed stablecoins.

Discussions between these companies and the Chinese financial regulator have already taken place behind closed doors. Hong Kong has been chosen as a strategic springboard for the launch of this new instrument. The area has become attractive due to its status and the existing regulatory framework governing the issuance of digital tokens linked to traditional currencies. The main goal of the companies is to accelerate the promotion of the yuan in the international arena and offer the world a replacement for the dominant dollar stablecoins such as USDT.

Interestingly, both companies already have permits to issue stablecoins backed by the Hong Kong dollar (HKD). However, according to sources, this is not enough to solve the strategic task. Representatives of JD. com told regulators that linking to HKD, which is closely linked to the US dollar, does not create a real alternative to the existing system. Only a stablecoin directly backed by yuan can become an instrument of influence.

The companies' plans extend beyond Hong Kong. Ant Group is preparing to apply for a license in Singapore, another important Asian financial center. has proposed distributing yuan-denominated stablecoins in Chinese free trade zones. According to reports, this project has attracted the interest of regulators.

The economic justification of the project is becoming more and more relevant. Shen Jianguang, chief economist at JD. com, noted that the share of the yuan in international settlements has decreased to 2.89%, and Chinese exporters are increasingly using dollar-denominated stablecoins (mainly USDT) to reduce currency risks and circumvent sanctions. He claims that the introduction of yuan stablecoins can significantly speed up transactions and reduce the costs associated with international payments by almost 90%. In his opinion, without its own digital instruments pegged to the yuan, China risks missing the opportunity to strengthen its currency as an important element of the new global financial system.