With the official entry into force of the Hong Kong Stable Coin Ordinance (hereinafter referred to as the "Regulations") on August 1 this year, Internet giants including JD.com and Ant Group are accelerating their layout in the stablecoin market.
The so-called stablecoin is a digital currency that anchors real assets, and its value is usually linked to a certain legal currency, commodity or other asset. Unlike the big ups and downs of cryptocurrencies such as Bitcoin, stablecoins are relatively stable cryptocurrencies with almost unchanged prices, like the "electronic cash" in the digital world.
Stablecoin was first launched in 2014. In 2020, the global stablecoin market value was only US$20 billion, which is in the initial stage of the market. Since then, stablecoins have entered a stage of rapid growth supported by two major momentum: on the one hand, in cryptocurrency transactions, more than 90% of Bitcoin transactions are settled through USDT/USDC, making them the "crypto-dollar standard"; on the other hand, in emerging market countries (such as Argentina), stablecoins have become "digital safe-haven assets" for the civilian class, accounting for as much as 72% of the cryptocurrency transaction volume in these countries.
Recently, JD.com founder Liu Qiangdong said that JD.com is preparing to apply for a stablecoin license in major currencies in the world. With the help of stablecoin license, JD.com hopes to achieve exchange services between global enterprises and significantly reduce cross-border payment costs. According to the plan, global cross-border payment costs are expected to be reduced by 90%, and payment efficiency will be improved to within 10 seconds.
JD.com said that the passage of the Regulations marks the formal inclusion of the virtual asset of stablecoin, a virtual asset, into the legal regulatory system. As a participant in the Hong Kong stablecoin issuer sandbox, JD Coin Chain will strictly abide by the content of the Regulations, actively work with global partners and regulatory agencies to implement more scenarios, build an industrial ecosystem, and promote the healthy, compliant and sustainable development of the industry. "At present, we are actively communicating and cooperating closely with the Hong Kong Monetary Authority and other regional regulators to promote JD's stablecoin business to carry out its business in compliance with the global compliance."
Coincidentally. Ant International said on June 12 that it will submit a license application as soon as possible after the Regulations come into effect and the relevant channels are opened. Ant International revealed that it is accelerating investment and expanding cooperation in global treasury management, and investing the company's AI, blockchain and stablecoin innovation in real and reliable large-scale applications.
The reporter learned that the current participants in stablecoins are roughly divided into three major camps: Internet platforms, payment institutions, and banks. On the evening of June 16, Lakala announced that it was planning to issue shares (H shares) overseas and list on the Hong Kong Stock Exchange, which was also believed by the industry to intend to stabilize the currency. Affected by the positive effects of stablecoins, Lianlian Digital (02598.HK)'s stock price has been rising.
In addition, regarding whether to apply for a Hong Kong stablecoin license, the listed company Small Commodity City (600415.SH) stated on the interactive platform on the 18th that the company operates the world's largest small commodity trading market and naturally has massive and high-frequency cross-border trade settlement scenarios. Innovative payment tools such as stablecoins have the potential to provide global merchants, especially small and medium-sized enterprises, with more efficient and low-cost cross-border payment solutions. Small Commodity City said that it welcomes and supports Hong Kong's positive progress in the stablecoin regulatory framework. The company's cross-border payment platform "Yiwu Pay" will continue to pay attention to the relevant regulatory process, and will actively evaluate and submit relevant applications as soon as possible after the regulations are clear and the path is smooth.
It is worth mentioning that David Parkman, a partner of CoinFund, a cryptocurrency native investment company, publicly stated that the global stablecoin supply may exceed US$1 trillion by the end of 2025, which may become the next important catalyst for the growth of the cryptocurrency market.
It is reported that in the current global stablecoin development process, the United States and Hong Kong, China, are at the forefront. Among them, the issuance of stablecoins in Hong Kong is uniformly regulated by the Hong Kong Monetary Authority, and the license system is adopted to restrict access, requiring the issuer to have sufficient reserve assets, and the market value of the reserve assets must be at least equal to the circulating face value. Previously, the Hong Kong Monetary Authority had launched a stablecoin issuer sandbox in 2024, with three first shortlisted institutions, namely JD Coin Chain Technology, Yuanbian Innovation Technology and a joint venture established by Standard Chartered Hong Kong, Animoca Brands and Hong Kong Telecom.
"The layout of Hong Kong's stablecoin license application is an important step for Internet giants such as JD.com and Ant Group in the cross-border payment market competition." In this regard, some industry experts said that in the stablecoin industry chain, issuers can absorb funds at zero cost on the liability side, and at the same time invest in high-liquid and low-risk assets on the asset side to earn interest rate spreads. However, stablecoins and related industries are in a stage of rapid development and have high growth potential, but the industrial chain is still in its early stage and is not yet mature. It still needs to be observed which industries can the license be applied to and what role it plays.
