Hong Kong Could Be Launchpad for RMB Stablecoin Revolution

China's recent explorations into RMB-denominated stablecoins mark a significant development in its broader strategy to enhance the internationalization of the digital yuan. While the Chinese government has traditionally maintained a cautious stance toward cryptocurrencies, recent actions suggest a potential shift. Notably, Chinese enterprises—particularly state-owned ones engaged in Belt and Road Initiative (BRI) projects—are evaluating the use of RMB-backed stablecoins to mitigate currency volatility and streamline cross-border transactions. Liu Jing, chief economist for Greater China at HSBC Global Investment Research, highlighted that these enterprises face significant financial exposure due to sudden fluctuations in local currencies in emerging markets. By issuing their own RMB stablecoins, these firms aim to hedge against such risks and facilitate more efficient project funding and payments [2].

This move aligns with broader geopolitical and economic considerations. Unlike many global stablecoins that are pegged to the U.S. dollar, an RMB-backed alternative could offer a new tool for international trade and investment, reducing dependency on the greenback. Liu further noted that the integration of RMB stablecoins could be facilitated through the digital RMB framework, potentially positioning the digital currency as an intermediary that unifies various stablecoin ecosystems. This approach could not only enhance the RMB’s role in global financial transactions but also support the strategic goals of BRI-related investments [2].

Hong Kong’s evolving regulatory environment is also playing a pivotal role in this development. The city’s recent stablecoin licensing ordinance, which took effect in August 2025, has positioned it as a potential hub for RMB stablecoin innovation. Hong Kong’s new regulatory regime requires stablecoin issuers to be licensed by the Hong Kong Monetary Authority, thereby fostering a more structured and transparent environment. Liu Jing emphasized that Hong Kong, with its established collaboration with the mainland on digital RMB projects and its newly introduced stablecoin framework, could become the first location for launching an RMB stablecoin [2]. This aligns with broader policy goals to support the digital yuan’s global adoption and reinforce Hong Kong’s role as a key financial center in the region.

Meanwhile, the broader global stablecoin landscape continues to evolve rapidly. The U.S. has taken steps to regulate stablecoins, with the passage of the GENIUS Act in July 2025, establishing the first federal regulatory regime for stablecoins. Wall Street has responded positively, with Goldman Sachs labeling the period as the “summer of stablecoins” [1]. Despite these developments, China’s approach remains distinct, balancing the risks of digital assets with the strategic benefits of expanding the RMB’s global footprint. Unlike volatile cryptocurrencies, stablecoins are designed to offer the efficiency of digital transactions while maintaining the stability of traditional currency, making them an attractive option for enterprises seeking to manage cross-border financial flows [1].

The potential adoption of RMB stablecoins could also reshape the dynamics of international financial flows, particularly in trade and investment. By leveraging stablecoins, Chinese enterprises could reduce transaction costs and enhance the speed of cross-border payments. This could not only benefit Chinese firms but also provide a new mechanism for countries participating in the BRI to engage in more stable and predictable trade. However, the success of this strategy will depend on regulatory coordination between China and its trade partners, as well as the broader acceptance of RMB-based stablecoins in global markets.

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[1] China's stablecoin dilemma: why US dollar tokens matter (https://www.scmp.com/economy/china-economy/article/3324322/chinas-stablecoin-dilemma-why-us-dollar-tokens-matter-and-how-beijing-might-respond)

[2] Chinese Firms Eye RMB Stablecoins for Projects, Boosting the Use of Digital RMB (https://cryptorank.io/news/feed/c5102-chinese-firms-eye-rmb-stablecoins-for-projects-boosting-the-use-of-digital-rmb)

[3] Hong Kong may have a RMB stablecoin in the future, and ... (https://www.odaily.news/en/newsflash/446721)