July 04, 2025
By Anjali Kocchar
Could the digital yuan become the next global stablecoin king? A bold new partnership between a key Chinese CBDC partner and a Hong Kong fintech firm might just lay the foundation for Beijing’s big crypto leap beyond borders.
GienTech, a close technology collaborator in China’s digital yuan rollout, has partnered with Hong Kong-based Octagon to build stablecoin and cross-border blockchain infrastructure. The two firms are set to co-develop digital currency solutions that blend traditional finance with the decentralized world marking a quiet yet strategic move that could amplify China’s digital currency influence beyond its borders.
The collaboration begins with research and development and will focus on designing blockchain systems that support fiat-pegged stablecoins. These systems aim to deliver real-time settlement, secure payment rails, and liquidity tools, all while staying aligned with international compliance standards.
Octagon, known for its Web3 capabilities and regulatory-first approach, offers a valuable bridge between China’s tech ambitions and Hong Kong’s evolving digital asset framework. With Hong Kong positioning itself as Asia’s regulated crypto hub, this partnership could be the ideal testing ground for stablecoin applications tied to China’s broader goals.
While China maintains strict control over cryptocurrency activity within the mainland, Hong Kong provides more flexibility. This allows Beijing to explore global digital finance indirectly, without breaching capital control policies. Analysts believe this setup lets China gauge the potential of stablecoins and tokenized finance in a globally regulated environment.
What makes this partnership particularly noteworthy is the potential to challenge U.S.-based stablecoins like USDT and USDC, which currently dominate the market. By backing stablecoin infrastructure that could eventually be linked with the e-CNY, China is quietly laying the groundwork for a sovereign alternative in international trade and digital settlements.
As stablecoins increasingly gain traction among institutions and central banks worldwide, this China-Hong Kong venture could evolve into a serious player. The next few months will be critical as both firms test technology, seek regulatory clarity, and potentially roll out pilot versions of their stablecoin framework.
If successful, the alliance could shift Asia’s digital finance landscape offering a new, compliant route for cross-border transactions backed by Chinese blockchain infrastructure.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
