JD Chain Advances Hong Kong Stablecoin License Bid Amid Regulatory Clarity

JD.com has denied rumors circulating in the market suggesting it is exiting the stablecoin business, clarifying that such claims are false. The company’s subsidiary, JD Chain, confirmed it is actively preparing to apply for a Hong Kong stablecoin license under the newly implemented regulatory framework. This response came after unverified reports emerged suggesting JD and other firms were withdrawing from the sector [1].

The company is currently in the second phase of the Hong Kong Monetary Authority (HKMA) stablecoin regulatory sandbox, a key step in its licensing journey. This aligns with broader efforts by the regulator to establish a robust framework for stablecoin issuance, which includes strict licensing criteria and anti-money laundering (AML) requirements. The HKMA has signaled that only a “single-digit” number of licenses will be issued initially, with the first batch expected in early 2026 [1].

JD is not the only firm positioning itself for a role in the regulated stablecoin market. Ant International and Ant Digital Technology, subsidiaries of Ant Group, have also announced their intention to apply for licenses in Hong Kong [1]. Additionally, Standard Chartered Bank and Circle Technology, already participating in the HKMA’s sandbox, are also seen as strong contenders. These companies are leveraging their existing blockchain infrastructure and AML systems to meet the regulatory requirements.

The regulatory environment has influenced investor behavior, with some stocks seeing sharp declines following the HKMA’s more cautious stance. Earlier in the year, speculative enthusiasm had driven up the value of stablecoin-related stocks, particularly among firms with minimal exposure to the sector. However, the regulator has emphasized the importance of long-term stability over short-term speculation, with HKMA Chief Executive Eddie Yue Wai-man warning that stablecoin development must be approached with caution to avoid misuse and financial crime [1].

JD.com has demonstrated its commitment to the sector by advancing its stablecoin into the second phase of sandbox testing, with applications in cross-border payments, investment transactions, and retail payments [1]. The company has also expressed its intention to seek stablecoin licenses in key global markets, indicating a broader strategic interest in digital currencies.

Analysts, including Chuanwei Zou, have pointed out that the HKMA’s licensing process requires applicants to demonstrate not only financial and technical readiness but also viable real-world use cases and strong compliance frameworks [1]. Companies like JD and Ant Group are seen as well-positioned due to their existing infrastructure and practical applications.

The licensing timeline has also shifted, with the HKMA confirming no licenses will be issued in 2025, pushing the first batch to early 2026 [1]. This has led to a recalibration in market expectations, with stablecoin-related stocks correcting after earlier surges. CITIC SEC has advised investors to focus on firms with strong use cases and robust compliance capabilities as the regulatory landscape continues to evolve [1].

Source: [1] Why did concept stocks collectively fall after the Hong Kong ... (https://news.futunn.com/en/post/60026539/why-did-concept-stocks-collectively-fall-after-the-hong-kong)