By Iris Shu Liu and Joe Pan
HONG KONG — JD.com plans to issue a stablecoin in Hong Kong and expand to Europe as the stablecoin market embraces diverse players, the company’s chief economist said. As Hong Kong’s Legislative Council moves toward the second reading of the Stablecoin Bill, the world’s fifth-largest ecommerce operator by market capitalization is poised to become the first Chinese ecommerce giant to launch a 1-to-1 Hong Kong dollar-pegged stablecoin.
A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to fiat currencies such as the U.S. dollar or euro, or to assets like gold or oil. JD.com was among the first three companies selected by the Hong Kong Monetary Authority for a regulatory ‘sandbox’ test in July 2024. The other participants are RD InnoTech Limited and a consortium comprising Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and Hong Kong Telecommunications (HKT) Limited.
“The goal of JD’s stablecoin is to enhance global supply chain and payment capabilities, once issued in Hong Kong, it is expected to be deployed globally.” Shen Jianguang, vice president and chief economist at JD Group, said in an interview during the Hong Kong Web 3.0 Festival in April.
Jingdong Coinlink Technology Hong Kong Limited, JD.com’s stablecoin issuer, will officially release the specifics of the 1-to-1 to Hong Kong dollar-pegged stablecoin when the Hong Kong Stablecoin Bill is finalized. The third or final reading of the Stablecoin Bill at the Hong Kong Legislative Council (Legco) is expected to take place in the second half of 2025 according to Duncan Chiu, Chairman of the Stablecoin Bill Committee, who shared the projected timeline of the Bill during a fiat-reference stablecoin (FRS) focused summit in February.
On April 25, Chiu presented a summary of the Bills Committee’s deliberations to the House Committee, noting support for the Administration’s proposed amendments and confirming the Bill’s second reading is scheduled for May 21.
Separately, Shen said JD.com may also seek a license under the European Union’s Markets in Crypto-Assets (MiCA) regulations, which require local authorization for legal stablecoin issuance
He noted that U.S. dollar-linked stablecoins currently account for 95% of global issuance. Under MiCA, the volume of stablecoin transactions subject to regulation will be smaller than that of U.S. dollar-related stablecoins.
Shen Jianguang spoke at the Web 3.0 Festival, on April 7, photo by Iris Liu
The two largest stablecoins globally are Tether’s USDT and Circle’s USDC. Although USDT’s asset disclosures have been questioned, it remains the most widely used stablecoin globally, partly due to its lower cost and fee structure.
Shen said JD’s stablecoin trading will depend on customer demand, and expects JD’s stablecoin and USDT to be paired and exchangeable in the future. Outside Europe, JD Group will comply with local laws and meet licensing requirements where applicable. In markets such as Japan and Singapore, if a Hong Kong-issued stablecoin is recognized and regulated locally, reissuance will not be required.
Asked why stablecoins are needed given China’s digital yuan, Shen explained that the digital yuan is centrally issued and regulated by the People’s Bank of China, whereas stablecoins are typically commercially issued, decentralized, and tailored to customer needs. The Hong Kong Special Administrative Region government has issued stablecoin licenses and has a digital Hong Kong dollar, adopting cross-border data strategies involving the central bank.
Regarding risks that commercially issued stablecoins might not be fully backed one-to-one by central bank currency, Shen said JD’s stablecoin will be licensed and regulated by Hong Kong’s financial regulator and that not everyone is qualified to issue stablecoins. Shen also noted JD.com’s stablecoin plan includes purchasing Hong Kong Dollar bonds as part of the pegging measure and asset management strategy.
“Regulated and unregulated stablecoins may coexist, but market participants bear corresponding costs and risks,” he said. “We are at the beginning of Web 3.0, and many things are evolving.”
About the Authors
Iris Shu Liu is a recent graduate of the HKBU Business and Financial Journalism Program. She was the winner for Best Business Reporting and Best Newspaper Design in the 2022 China Daily Campus Newspaper Awards (English Edition). She is currently an intern correspondent for National Business Daily (NBD), a China-based business daily newspaper with a readership and reach of 100 million.
Joe Pan is an editor at Blockwind News and an early adopter of blockchain technology. He has covered major crypto conferences globally since 2019 and moderated Web3 events across Asia. Joe is part of the founding team of Blockwind News and teaches Asia’s only accredited Master of Journalism course on “Covering Cryptocurrency and Blockchain” at Hong Kong Baptist University.
