In-depth Analysis of JD Hong Kong Stablecoin: From Sandbox Pilot to License Competition

Regarding digital stablecoins, there have been several landmark events in the past month:

1. The first comprehensive regulatory framework for stablecoins in the United States, the "Guiding and Establishing the National Innovation Act for U.S. Stablecoins" (GENIUS Act), was passed by the Senate committee in May 2025, bringing it one step closer to formal legislation.
2. The Hong Kong Legislative Council also officially passed the regulatory bill for digital stablecoins in May 2025.
3. Former Vice President of the Bank of China, Wang Yongli, stated at the Tsinghua Wudaokou Global Financial Forum in May 2025 that he suggested that the Chinese mainland pay more attention to the development of stablecoins from both the industry and academia.
4. The first publicly listed company in the stablecoin sector, Circle, went public on the New York Stock Exchange on June 5, 2025. On its first day of trading, the stock performed exceptionally well, soaring from the issue price of $31 to $69 at the opening, reaching a high of $103.75 during the day, and ultimately closing at $83.23, an increase of 168% from the issue price.

In addition, there is another view in the industry that stablecoins pegged to the US dollar are an extension of US dollar hegemony in the digital currency space, while stablecoins pegged to the Hong Kong dollar are a way to implement China's RMB internationalization strategy (the underlying assets may potentially include Chinese government bonds in the future).

Although JD's stablecoin is issued in Hong Kong, it can still be considered a proactive exploration by China in the field of digital currency. This article attempts to analyze the background, progress, and technical implementation of JD's issuance of digital stablecoin in Hong Kong, evaluate its impact on JD itself, Hong Kong, and mainland China, and discuss the profit model, policy environment, and global trends (including the United States, Europe, Singapore, etc.) of digital stablecoins.

1. Current Progress Overview

JD Group's JD Coin Chain Technology (Hong Kong) Co., Ltd. is actively promoting the pilot issuance of the Hong Kong dollar stablecoin, aimed at enhancing cross-border payment capabilities and serving the real economy. As early as December 2023, the Hong Kong Special Administrative Region government announced the establishment of a licensing system for stablecoin issuers through legislation, in line with the trend of financial innovation. Under the strategic guidance of the Group's overseas business, the JD Coin Chain Technology team has conducted in-depth research in the Web3 field and discovered that issuing payment stablecoins through blockchain can solve its cross-border settlement difficulties and serve other enterprises, bringing significant economic and social benefits. Therefore, JD immediately initiated the license application in Hong Kong, and after about a year of efforts, successfully became one of the first batch of participants in the "stablecoin issuer sandbox" announced by the Hong Kong Monetary Authority (HKMA) in July 2024. This batch of participants includes three groups: JD Coin Chain Technology, RD Technologies, and a consortium formed by Standard Chartered Bank (Hong Kong), Animoca Brands, and Hong Kong Telecommunications. Starting from the second half of 2024, the JD stablecoin will enter the HKMA sandbox testing, with the second phase of testing currently targeting retail and institutional users' PC and mobile applications, focusing on scenarios such as cross-border payments, investment transactions, and daily retail consumption.

The JD stablecoin project has received recognition and guidance from Hong Kong regulators. Through the regulatory sandbox, the HKMA allows institutions intending to issue stablecoins in Hong Kong to test their proposals and engage in two-way communication with regulators, providing a basis for the formulation of formal regulatory systems. JD Coin Chain Technology maintains close communication with the Hong Kong Monetary Authority and collaborates with regulatory agencies in other regions worldwide to promote the global compliance expansion of stablecoin business. Currently, the JD stablecoin has not been officially issued to the public, and the official emphasizes that there are no purchasing channels available, reminding the public to be wary of related scam information. According to company leader Liu Peng, the JD stablecoin is in the later stages of sandbox testing and is expected to be launched in the market after Hong Kong officially issues licenses. The overall timeline shows: End of 2023 Hong Kong establishes stablecoin regulatory framework → July 2024 JD enters sandbox pilot → May 2025 Hong Kong Legislative Council passes the "Stablecoin Ordinance" → Mid-2025 JD stablecoin completes multiple rounds of testing, imminent issuance.

During the project advancement, JD closely collaborated with regulators and industry partners. The Hong Kong Monetary Authority launched a stablecoin issuer sandbox pilot in March 2024, and as of July 2024, it has received consultation applications from dozens of institutions. The first batch of institutions participating in the sandbox includes JD, as well as Round Coin Technology, which issues the Hong Kong dollar stablecoin "HKDR", and a joint project led by Standard Chartered Hong Kong for the Hong Kong dollar stablecoin. On the regulatory side, the HKMA, the Financial Services and the Treasury Bureau, and others maintain communication with JD Coin Chain Technology to ensure the project meets regulatory requirements. JD is also exploring cooperation opportunities with certain traditional financial institutions to jointly improve the application ecosystem for stablecoins. Notably, the Hong Kong financial regulatory authority officially implemented the "Stablecoin Ordinance" on May 30, 2025, marking a step closer for JD and other initial pilot institutions to official licensed issuance. Supported by the regulatory sandbox, the JD stablecoin project has progressed smoothly, laying a foundation for the next stage of formal issuance.

2. Strategic Significance

For JD Group, issuing digital stablecoins holds significant strategic value.

On one hand, stablecoins can serve as the payment infrastructure for JD's global business, addressing pain points in cross-border payment settlements. Liu Peng, CEO of JD Coin Chain Technology, stated that stablecoins possess certain currency attributes and also have the technical advantages of digital assets, which can offset the significant volatility of traditional cryptocurrencies, making their mark in the payment field. The positioning of JD's stablecoin is not limited to serving JD's own e-commerce ecosystem but is aimed at global enterprises and individuals, offering more efficient, low-cost, and secure payment solutions. By mastering the bridge between fiat currencies and cryptocurrencies, JD is expected to gain an advantage in areas such as cross-border e-commerce and overseas market acquisition settlements.

In addition, the issuance of stablecoins can bring resources and benefits to JD Finance's technology sector, such as earning interest on user deposited funds and enhancing the accumulation of transaction data.

Overall, stablecoin projects help consolidate JD's position as a technology-driven service company and expand the fintech landscape.

For the Hong Kong International Financial Centre, JD's choice to issue a stablecoin in Hong Kong highlights Hong Kong's unique value in the digital currency experiment.

The Hong Kong Special Administrative Region government has actively embraced the virtual asset and Web3 industry in recent years, committed to consolidating Hong Kong's position as an international financial center. The passage of the "stablecoin regulation" and the advancement of sandbox pilot programs have made Hong Kong the first jurisdiction in the world to establish a comprehensive regulatory framework for fiat currency stablecoins. This is of great significance to Hong Kong: firstly, stablecoins, as representatives of digital financial infrastructure, are expected to enhance the innovative vitality and competitive advantage of Hong Kong's financial market; secondly, the stablecoin pilot has attracted participation from well-known domestic and foreign companies, including JD.com and Standard Chartered, driving capital market attention to relevant concepts; thirdly, by being the first to regulate stablecoins, Hong Kong can gain a certain degree of discourse power in the formulation of international rules.

Some analyses indicate that the development of stablecoins essentially extends the dominance of the US dollar into the crypto realm. Whoever sets the rules will gain an advantage in the reshuffling of the future monetary system. Therefore, Hong Kong's bet on stablecoins is expected to play a key role in the new round of financial transformation.

The Hong Kong stablecoin experiment also has enlightening significance for the development of digital finance in mainland China.

Currently, mainland China still maintains a strict regulatory attitude towards cryptocurrencies and stablecoins, mainly promoting the implementation of central bank digital currency (digital yuan). However, practices in Hong Kong indicate that stablecoins can serve as payment tools rather than merely speculative assets under a compliance framework, with regulatory logic shifting towards viewing them as financial infrastructure. According to a research report by CITIC Securities, the advancement of stablecoin legislation in Hong Kong and the United States will provide a stable trading medium for the tokenization of real assets, facilitating the issuance of real-world asset (RWA) projects by mainland Chinese enterprises in Hong Kong.

At the same time, the implementation of stablecoin policies is expected to indirectly promote cooperation between Hong Kong and the mainland in the construction of interfaces for cross-border settlement of the digital RMB, supply chain finance, and other areas. Liu Peng from JD also revealed that the team is actively researching the possibility of issuing stablecoins pegged to offshore RMB, providing new tools for the cross-border circulation of RMB, but this requires communication with mainland regulators.

It is foreseeable that the successful pilot of stablecoins in Hong Kong will provide a sample for mainland observation: on one hand, to verify the actual benefits of digital currencies in trade settlement and consumption payments; on the other hand, it will also force the mainland to think about how to incorporate the advantages of stablecoins into the future digital financial system under the premise of safety and controllability. For example, it is not ruled out that the future digital renminbi may refer to stablecoin mechanisms to enhance cross-border usability and programming functions, etc.

In summary, the Hong Kong stablecoin project, as a "cutting-edge testing ground", will influence the direction of digital financial regulation and innovation in mainland China with its experiences and lessons.

3. Technical Implementation

3.1. Technical Architecture and Underlying Chain Selection

JD stablecoin is issued using blockchain technology architecture and is a digital token based on a public blockchain. According to the project leader, JD stablecoin will be anchored to the Hong Kong dollar (HKD), maintaining a stable value at a 1:1 ratio. This means that for every JD stablecoin issued, there is a reserve asset equivalent to 1 Hong Kong dollar backing it.

Choosing a public chain as the underlying layer is to leverage the distributed ledger, peer-to-peer transmission, programmability, and other characteristics of blockchain to achieve transparent circulation of value and fast settlement. At the same time, using mainstream public chains helps to improve the compatibility of stablecoins, making it easier for different wallets, trading platforms, and applications to connect.

The specific name of the public chain on which it is based has not been announced, but it is speculated that it may be built on mature chains such as Ethereum, or upgraded from JD's self-developed regulatory alliance chain architecture, in order to balance performance and compliance requirements.

3.2. Anchor Mechanism and Reserve Custody

As a fiat stablecoin, the JD stablecoin adopts a 100% full reserve anchoring mechanism, meaning that each unit of token is backed by high-quality, highly liquid assets to ensure price stability and that holders can redeem at face value.

According to the information from JD Coin Chain Technology and Yuan Coin Technology's official websites, both upcoming Hong Kong dollar stablecoins will be pegged 1:1 to the Hong Kong dollar, with reserve assets consisting of highly liquid assets held in independent accounts at licensed financial institutions, and made available for external inquiry through regular disclosure reports. This means that the reserve of the JD stablecoin may mainly consist of cash and bank deposits, short-term government bonds, and other low-risk assets, stored in recognized custody bank accounts, isolated from the issuer's own funds. This custody arrangement can prevent the issuer from misappropriating reserves and protect the rights of the holders.

Hong Kong regulatory requirements stipulate that stablecoin issuers must redeem holders' tokens at face value at any time. Therefore, the JD stablecoin has designed a comprehensive redemption mechanism: users can submit a redemption request, and the issuer promises to pay in fiat currency equivalent within a reasonable time. Meanwhile, the system will record the issuance and redemption processes through smart contracts or backend systems to ensure that the on-chain token quantity corresponds in real-time with reserve assets.

3.3. Cross-border Payment and Smart Contract Mechanism

One of the key technical implementations of JD's stablecoin is its application in cross-border payment scenarios.

Leveraging the peer-to-peer transmission characteristics of blockchain, fund settlement between two locations can bypass traditional multi-level intermediaries, achieving near real-time arrival and reducing the fees and exchange rate costs of cross-border remittances. JD.com revealed that the testing scenarios include cross-border trade payments and retail payments. For example, in cross-border e-commerce, overseas consumers can directly use JD stablecoin for payments, saving on exchange fees compared to credit card channels; suppliers can also timely recover payments through stablecoin, accelerating capital turnover.

In addition, JD.com is testing stablecoin payments in connection with its online mall in Hong Kong and Macau, which is expected to address the pain points of slow settlement and high transaction fees in traditional retail payments.

In terms of smart contract mechanisms, stablecoins are inherently programmable as blockchain tokens. This means that businesses can integrate stablecoins into smart contracts to achieve automated payments and financial innovations. For example, in supply chain finance, contracts can be written to automatically release stablecoin payments to suppliers once the logistics system confirms receipt of goods, thereby reducing manual intervention and credit risks. Similarly, in gaming or digital asset transactions,