Chinese fintech heavyweight Ant Group has dismissed speculation that it is collaborating with the People’s Bank of China (PBoC) to issue a rare earth-backed RMB stablecoin.
Key Takeaways:
- Ant Group denied working with the PBoC on a rare earth-backed RMB stablecoin.
- Regulatory restrictions keep Chinese firms’ stablecoin efforts focused on overseas markets.
- Authorities have tightened controls on stablecoin research and promotion.
The company addressed the rumors on Weibo Sunday night, warning the public not to be misled by reports suggesting such a project was underway.
“Ant Group has never had such plans with relevant institutions. The public is advised to pay attention and beware of being deceived,” it wrote.
Chinese Firms Eye Stablecoins for Overseas Markets Amid Domestic Curbs
The clarification comes as interest in stablecoin technology grows among Chinese companies, though regulatory restrictions keep such initiatives aimed strictly at overseas markets.
Last month, Chinese regulators instructed brokerages to scale back research and public commentary on stablecoins, fearing a resurgence of domestic crypto enthusiasm.
Mainland China maintains a ban on cryptocurrency trading, citing risks to financial stability.
Ant Group remains active in blockchain development. The firm is working to integrate Circle’s USDC stablecoin into its blockchain platform once the token achieves full compliance in the U.S. under the GENIUS Act.
It has also explored the possibility of launching stablecoins pegged to the Hong Kong dollar.
Other Chinese corporations are pursuing similar strategies. In June, e-commerce giant JD.com announced plans to seek stablecoin licenses in multiple jurisdictions to cut costs and speed up cross-border payments.
JD.com said it would begin with business-to-business transactions before expanding to consumer use.
Local governments in Beijing, Suzhou, and Zhejiang have recently issued warnings about illicit fundraising linked to stablecoins and virtual currencies.
Last week, Chinese financial regulators also instructed local brokerages and research bodies to halt publishing studies or hosting seminars that promote stablecoins, to limit potential risks from the fast-growing asset class.
In late July and earlier this month, some of China’s leading brokerages and think tanks received direct guidance from regulators to cancel events and stop distributing research on stablecoins.
The move came despite renewed speculation over China’s stance on digital assets, fueled by recent official comments and Hong Kong’s rollout of new legislation for stablecoin issuers.
Stablecoins Find Momentum
Globally, stablecoin regulation is accelerating. In the US, President Donald Trump signed the first federal stablecoin bill on July 18, calling it a “giant step” toward securing American dominance in global finance and crypto technology.
As reproted, Western Union is positioning itself for a new phase of digital transformation, signaling strong interest in using stablecoins to modernize its global remittance operations.
Last month, CEO Devin McGranahan outlined how stablecoins could streamline cross-border transfers, improve currency conversion in underserved markets, and provide financial tools for populations grappling with unstable local currencies.
Meanwhile, Ripple CEO Brad Garlinghouse has said the stablecoin sector is poised for explosive growth, projecting the market could balloon from its current $250 billion capitalization to as much as $2 trillion in the near future.
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