By Zhong Yuan, Economic Reference News
As Hong Kong's Stablecoin Ordinance (hereafter referred to as the Ordinance) takes effect on August 1, 2025, internet giants like JD.com and Ant Group are accelerating their forays into the stablecoin market.
What Are Stablecoins?
Stablecoins are digital currencies pegged to real-world assets, typically tied to fiat currencies, commodities, or other reserves. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain near-constant values, functioning as "digital cash."
Introduced in 2014, stablecoins saw modest adoption initially (global market cap: $200B in 2020). However, two key drivers fueled rapid growth:
- Crypto Trading: Over 90% of Bitcoin trades are settled via USDT/USDC, making stablecoins the de facto "crypto-dollar standard."
- Emerging Markets: In countries like Argentina, stablecoins serve as "digital safe havens," accounting for 72% of crypto transactions.
Strategic Moves by Key Players
JD.com
Founder Liu Qiangdong announced plans to apply for stablecoin licenses in major economies, aiming to slash cross-border payment costs by 90% and enable sub-10-second transactions. JD’s blockchain arm, a participant in Hong Kong’s regulatory sandbox, emphasized compliance and global collaboration with regulators.
Ant Group
Ant International confirmed it will submit a license application post-Ordinance. The company is scaling AI/blockchain innovations for treasury management and real-world use cases.
Other Contenders
- Payment Firms: LalaKu’s planned Hong Kong IPO hints at stablecoin ambitions.
- Banks/Retail: Yiwu Pay (operated by small-commodity marketplace Xiaoshangcheng) is evaluating applications to enhance cross-border solutions for SMEs.
Market Outlook
CoinFund’s David Parkman predicts global stablecoin supply could exceed $1T by 2025’s end, potentially catalyzing crypto’s next growth phase.
Regulatory Leadership:
- Hong Kong: The HKMA oversees issuance via a licensing framework, mandating full reserve backing.
- U.S.: Pioneering clear(er) guidelines amid global competition.
Industry Perspectives
Experts note that stablecoin issuers profit from interest spreads on reserve assets but caution that applications remain nascent. "Licensing’s ultimate impact on industries like cross-border payments still needs observation," said one analyst.
FAQ Section
Q: Why are stablecoins critical for cross-border payments?
A: They reduce fees/time by bypassing traditional intermediaries (e.g., SWIFT).
Q: How does Hong Kong’s sandbox program work?
A: It tests stablecoin models under HKMA supervision, with JD, Ruuby, and a SCB/Animoca consortium as early participants.
Q: What risks do stablecoins pose?
A: Reserve mismanagement or regulatory shifts could destabilize pegs.
👉 Explore Hong Kong’s crypto regulations
👉 Stablecoins vs. CBDCs: Key differences
Note: Commercial links removed per guidelines. Hong Kong’s 2024 sandbox details updated for accuracy.
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