Digital Stablecoins: JD's Hong Kong Experiment and the Global New Landscape

JD Group's JD Coin Chain Technology (Hong Kong) Co., Ltd. is actively promoting the pilot issuance of a Hong Kong dollar stablecoin, aimed at enhancing cross-border payment capabilities and serving the real economy. In July 2024, JD Coin Chain Technology was successfully selected as one of the first participants in the "stablecoin issuer sandbox" announced by the Hong Kong Monetary Authority. Starting from the second half of 2024, the JD stablecoin will enter the sandbox testing of the Hong Kong Monetary Authority, with the second phase of testing currently targeting PC and mobile applications for retail and institutional users, focusing on scenarios such as cross-border payments, investment transactions, and daily retail consumption.

For JD Group, issuing digital stablecoins has significant strategic value. Stablecoins can serve as the payment infrastructure for JD's global business, addressing pain points in cross-border payment settlements. The positioning of JD stablecoin is not limited to serving JD's own e-commerce ecosystem, but is aimed at global enterprises and individuals, providing more efficient, low-cost, and secure payment solutions. By mastering the bridge between fiat currency and cryptocurrency exchanges, JD is expected to gain an advantage in areas such as cross-border e-commerce and overseas market acquiring settlements.

For Hong Kong, as an international financial center, JD's choice to issue stablecoins in Hong Kong highlights the unique value of Hong Kong in the digital currency experiment. In recent years, the Hong Kong SAR government has actively embraced the virtual asset and Web3 industry, striving to consolidate Hong Kong's status as an international financial center. In May 2025, the passage of the "Stablecoin Ordinance" made Hong Kong the first jurisdiction in the world to establish a comprehensive regulatory framework for fiat-backed stablecoins.

In terms of technical implementation, the JD stablecoin is issued using a blockchain technology architecture and is a digital token based on a public chain. According to the project leader, the JD stablecoin will be pegged to the Hong Kong dollar, maintaining a stable value at a 1:1 ratio. This means that for every JD stablecoin issued, there is a backing reserve of an equivalent of 1 Hong Kong dollar in assets. As a fiat-backed stablecoin, the JD stablecoin adopts a 100% full reserve pegging mechanism, meaning that each unit of the token has high-quality, highly liquid assets as reserves to ensure price stability and that holders can redeem at face value.

The profit model of digital stablecoins mainly includes seigniorage and interest income, value-added services, and ecological effects. Users holding coins exchange fiat for stablecoins, which is equivalent to the issuer obtaining a deposit of interest-free funds. The issuer can invest this reserve in low-risk interest-bearing assets, thereby earning interest margins. In addition, cross-border settlement and payment services can generate value-added income, and there are opportunities in the field of supply chain finance.

On May 21, 2025, Hong Kong's Legislative Council passed the "Stablecoin Ordinance Draft," which officially took effect on May 30, becoming the first law in Asia to systematically regulate fiat stablecoins. The ordinance establishes a licensing system for stablecoin issuers, to be implemented by the Hong Kong Monetary Authority. The ordinance stipulates that any stablecoin issued in Hong Kong that is pegged to the value of a legal tender or issued overseas but claims to be anchored to the value of the Hong Kong dollar must apply for a license from the Monetary Authority.

In terms of international comparison, the United States, the European Union, Singapore and other regions are accelerating the construction of regulatory frameworks for stablecoins. The U.S. Congress passed the GENIUS Act, establishing the first nationwide unified regulatory framework for stablecoins. The EU's Markets in Crypto-Assets Regulation (MiCA) was officially passed in 2023 and will come into effect in phases from the end of 2024 to 2025. The Monetary Authority of Singapore released a new regulatory framework for stablecoins in August 2023, applicable to single-currency stablecoins pegged to the Singapore dollar or G10 currencies.

In terms of industry giants, PayPal officially launched PayPal USD (PYUSD) stablecoin in August 2023, making it the first dollar stablecoin introduced by a major payment company. Stripe has chosen to enter the digital currency space by integrating other stablecoins and has further launched new features such as stablecoin payment accounts, covering over 100 countries worldwide. The well-known European payment company Adyen has also begun to change its attitude and is making technical preparations, such as upgrading payment gateways to support settlements in stablecoins like USDC.

The development of digital stablecoins is no longer a question of "whether it is feasible," but rather "when it will flourish comprehensively." With the gradual clarity of regulations in various countries, a new era for stablecoins is unstoppable. Let's wait and see: will JD take advantage of Hong Kong's stablecoin to usher in a new peak of development? Or will a latecomer emerge, taking off from Hong Kong, to compose a new legend of digital stablecoins?