TL;DR

• Ant Group and JD.com have reportedly paused plans to issue stablecoins in Hong Kong.
• Beijing regulators, including the PBoC and CAC, raised concerns about privately controlled digital currencies.
• Hong Kong's pilot program for stablecoin issuers now faces uncertainty amid tightening mainland oversight.
• The move highlights China's cautious approach toward decentralized money, as it continues to back its state-run digital yuan.

Hong Kong's ambitions to become Asia's next big stablecoin hub just hit turbulence. Two of China's largest tech firms - Ant Group and JD.com - have reportedly suspended their plans to launch stablecoins in the city after Beijing regulators raised concerns about privately issued digital currencies.

According to a Financial Times report, the People's Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed the firms to pause their initiatives, signaling growing unease in Beijing about potential competition with the country's own central bank digital currency (CBDC), the digital yuan.

A Shift in Tone from Beijing

The decision marks a subtle but significant shift in mainland China's approach to Hong Kong's fintech experiments. Earlier this year, both Ant Group and JD.com - two fintech powerhouses with extensive digital payment networks - had shown interest in joining Hong Kong's pilot stablecoin program or developing tokenized financial products, including digital bonds.

Beijing initially viewed Hong Kong's efforts as complementary to its broader goal of internationalizing the yuan through renminbi-pegged stablecoins. But as private players began moving faster than expected, mainland regulators reportedly grew concerned that privately issued tokens could undermine monetary control or blur the line between government-sanctioned and corporate-backed digital money.

Hong Kong's Stablecoin Ambitions Slow Down

Hong Kong officially began accepting applications for stablecoin issuers in August 2025, part of its broader effort to establish itself as a global Web3 and fintech hub. The program was designed to give regulated entities a clear path to issue fiat-backed tokens, ensuring transparency and investor protection - something that global regulators have long called for.

But in recent months, the city's once-celebrated stablecoin plans have started to lose momentum. Ye Zhiheng, Executive Director of the Intermediaries Division at Hong Kong's Securities and Futures Commission (SFC), cautioned in September that the city's evolving framework for stablecoin issuers had "heightened the risk of fraud," underscoring the fine line between innovation and oversight.

A Deleted Report Fuels Speculation

In September, Chinese media outlet Caixin published - and quickly removed - a report suggesting that Beijing had ordered tighter control over Hong Kong's stablecoin activities. The deletion sparked speculation about behind-the-scenes coordination between the mainland and Hong Kong regulators.

While neither the PBoC nor Hong Kong authorities have commented publicly, the temporary halt of major projects like those from Ant Group and JD.com adds weight to the theory that Beijing is quietly reasserting its influence over the city's financial experiments.

Digital Yuan Still Takes Center Stage

China's digital yuan, or e-CNY, remains the centerpiece of the country's digital currency strategy. The government has rolled it out across dozens of cities, with millions of users participating in pilot programs.

Analysts say the government's hesitation toward corporate-backed stablecoins is partly due to fears they could fragment China's controlled digital finance ecosystem or weaken adoption of the e-CNY. “ Beijing has been clear about one thing - monetary sovereignty comes first," said a Hong Kong-based fintech researcher who requested anonymity. "Allowing private firms to issue stablecoins would complicate that narrative."

The Broader Context: Hong Kong's Balancing Act

Hong Kong's Web3 push - from exchange licensing to stablecoin regulations - has been a bold attempt to reassert its financial independence and attract global crypto talent. The city's government has also encouraged banks like Standard Chartered and HSBC to engage more with crypto-related businesses. However, the latest developments show how fragile that balance remains when mainland policy concerns enter the picture.

A recent PwC Hong Kong report noted that the city's ability to become a true "crypto bridge" between East and West depends heavily on regulatory stability - something that could be undermined if Beijing continues to intervene directly.

Private vs. Public Digital Money

The debate over who should issue digital money - governments or private firms - is heating up globally. In the West, stablecoins like USDC and USDT dominate cross-border payments, while central banks experiment with their own digital currencies.

China's move suggests it prefers to keep monetary innovation centralized, even in semi-autonomous regions like Hong Kong. By pausing Ant and JD.com's stablecoin plans, Beijing is effectively drawing a boundary between public and private innovation - one where private companies can help build infrastructure, but not control the money itself.

Final Thought

The suspension of stablecoin projects by Ant Group and JD.com is more than a policy hiccup - it's a reminder of China's cautious stance toward private digital currencies. Hong Kong may continue to position itself as a Web3 hub, but when innovation meets Beijing's financial red lines, the limits of that autonomy become clear.