Ant Group and JD suspend Hong Kong stablecoin projects: Beijing's regulatory crackdown draws a red line for private Digital Money issuance.

Ant Group and JD.com have suspended their stablecoin-related projects and tokenization financial product plans in Hong Kong. This move is in response to the requirements of regulatory authorities in mainland China, including the People's Bank of China (PBoC) and the Cyberspace Administration of China (CAC), indicating Beijing's extremely cautious attitude towards offshore digital asset activities involving private enterprises. The core regulatory dispute centers on the issuance rights of digital money, with mainland authorities clearly stating that any private participation in currency issuance, even in Hong Kong, will still be subject to strict supervision.

Beijing Regulatory Core: The Struggle for the “Minting Rights” of Digital Money

Ant Group and JD.com initially showed strong interest in launching stablecoin-related services and tokenization financial products in Hong Kong, but they are now forced to suspend these plans due to direct instructions from the mainland authorities.

· Regulatory focus: Sources have revealed to the Financial Times that the core concern of regulators is who ultimately has the issuance rights of Digital Money—whether it is the central bank or private companies in the market.

· Private companies are restricted: The People's Bank of China and the National Internet Information Office have made it clear that any involvement of private companies in currency issuance, even in markets outside the mainland, will be subject to strict regulation. This reflects Beijing's broad concerns about maintaining control over financial infrastructure and the digital currency system.

Hong Kong Stablecoin Pilot Faces Cold Reception: Chinese Enterprises Suspend Participation

Hong Kong will start accepting applications from stablecoin issuers in August 2025, aiming to strengthen its position in the global digital finance arena. The city initially positions itself as a testing ground for renminbi-pegged stablecoins and other tokenized products.

· Plan stalled: Several companies with mainland backgrounds, including Ant Group and JD.com, originally considered joining this pilot program. However, due to concerns raised by regulatory authorities in both Hong Kong and mainland China, the momentum of the program has slowed.

· Warning from the Hong Kong SFC: Ye Zhiheng, Executive Director of the Intermediaries Division of the Hong Kong Securities and Futures Commission (SFC), recently warned that the stablecoin framework increases the risk of fraud. His remarks come as some companies involved in the stablecoin business have reported losses shortly after the rules came into effect.

Clear Regulatory Boundaries: Restrictions on Tokenization Financial Activities

Although Hong Kong seeks to position itself as a global digital asset center, mainland regulatory agencies seem uneasy about private enterprises entering this field. Halting stablecoin projects is not the only example.

· Brokerage activities restricted: Reports indicate that the China Securities Regulatory Commission (CSRC) has also instructed mainland brokerages to suspend real-world asset (RWA) tokenization activities in Hong Kong. Although these actions occur in the offshore market, it seems that Beijing is delineating the boundaries for Chinese enterprises exploring tokenization finance.

· Sensitivity verification: Previously, a report about Beijing imposing restrictions on the Hong Kong stablecoin plan was withdrawn shortly after its release in September, further confirming the sensitivity of the topic.

Official financial institutions are still promoting the tokenization process.

Despite the resistance faced by the private sector's stablecoin issuance, the tokenization activities in Hong Kong have not completely stopped, especially when it involves state-owned financial institutions.

· Progress of CMB International: In a recent development, CMB International Asset Management, a subsidiary of China Merchants Bank in Hong Kong, has tokenized its $3.8 billion money market fund on the BNB Chain.

· Differentiated treatment: This indicates that while the issuance of private stablecoins faces challenges, there is still room for innovation in other types of digital assets—especially when led by state-affiliated financial institutions.

Conclusion

The decision by Ant Group and JD.com to suspend their Hong Kong stablecoin project clearly reflects Beijing's firm stance on the issuance of Digital Money and financial control. For Chinese tech giants, participation in the development of stablecoins in Hong Kong has been put on hold in the short term, highlighting the ongoing cautious attitude of mainland regulators. This event serves as a wake-up call for the global digital asset market, indicating that private innovation will face strict limitations regarding the control of sovereign currency.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.