Ant Group Denies Rare Earth-Backed RMB Stablecoin Collaboration Rumors

Ant Group has officially denied recent speculation circulating online that it is collaborating with the People’s Bank of China (PBoC) and China Rare Earth Group to develop a rare earth-backed RMB stablecoin. The company addressed the rumors on Weibo Sunday night, emphasizing that “Ant Group has never had such plans with relevant institutions. The public is advised to pay attention and beware of being deceived” [1]. The denial follows reports suggesting that Ant Group would invest CNY10 billion (USD1.4 billion) in the project’s initial phase [2].

Regulatory constraints in mainland China continue to shape the stablecoin landscape. While Chinese firms are exploring opportunities overseas, domestic activities remain tightly controlled. Authorities have recently tightened regulations, instructing brokerages to reduce public commentary and research on stablecoins to prevent renewed domestic interest in crypto assets [3]. Local governments in Beijing, Suzhou, and Zhejiang have also issued warnings about illicit fundraising tied to stablecoins and virtual currencies [4].

Despite these domestic restrictions, Ant Group remains engaged in blockchain innovation. The company is currently working on integrating Circle’s USDC stablecoin into its blockchain platform once the token achieves full compliance in the U.S. under the GENIUS Act [5]. Additionally, Ant Group has explored the feasibility of launching stablecoins pegged to the Hong Kong dollar [6].

The broader trend in China shows firms pivoting toward international markets for stablecoin initiatives. For example, e-commerce giant JD.com announced earlier this year that it is seeking stablecoin licenses in multiple jurisdictions to enhance cross-border payment efficiency [7]. This trend reflects a strategic shift in response to domestic regulatory challenges.

Meanwhile, global stablecoin regulation is gaining momentum. In the U.S., President Donald Trump signed the first federal stablecoin bill on July 18, highlighting its significance for maintaining American leadership in crypto technology and global finance [8]. Ripple CEO Brad Garlinghouse has also expressed optimism about the sector’s potential, forecasting a surge in market capitalization from $250 billion to as high as $2 trillion in the near future [9].

Western financial institutions are similarly embracing stablecoins. Western Union’s CEO, Devin McGranahan, has outlined how the asset class can streamline cross-border transfers and provide financial tools for underbanked populations [10].

Ant Group’s denial underscores the cautious approach firms must take in navigating China’s evolving regulatory environment while still pursuing blockchain innovation abroad. As global stablecoin frameworks develop, Chinese firms are likely to continue exploring international opportunities to remain competitive in the digital currency landscape.

Sources:

[1] [Ant Group Denies Rumors of Rare Earth-Backed RMB Stablecoin With People’s Bank of China](https://cryptonews.com/news/ant-group-denies-rumors-of-rare-earth-backed-rmb-stablecoin-with-peoples-bank-of-china/)