Ant Group Denies PBoC Partnership on Rare Earth-Backed Yuan Stablecoin

yesterday / 11:44

Chinese fintech giant Ant Group has publicly refuted rumors of collaborating with the People's Bank of China (PBoC) to develop a rare earth-backed yuan stablecoin. The company issued a formal denial on Weibo, stating: "Ant Group has never had such plans with relevant institutions. The public is advised to pay attention and beware of being deceived." This clarification addresses speculation about a purported $1.4 billion investment in the project.

The denial comes amid tightening domestic restrictions on stablecoin activities in mainland China. Last month, financial regulators directed brokerages and research institutions to halt studies and promotional events related to stablecoins, aiming to curb crypto enthusiasm. Authorities in Beijing, Suzhou, and Zhejiang have simultaneously issued warnings about illegal fundraising schemes involving stablecoins.

Despite these constraints, Chinese firms continue exploring stablecoin applications for overseas markets. Ant Group is advancing blockchain initiatives including plans to integrate Circle's USDC stablecoin upon its full compliance with the U.S. GENIUS Act, and has explored Hong Kong dollar-pegged stablecoins. Similarly, JD.com announced in June its pursuit of stablecoin licenses in multiple jurisdictions to streamline cross-border payments, starting with B2B transactions.

Globally, stablecoin regulation is accelerating with the U.S. passing its first federal stablecoin bill in July. Major financial players like Western Union are evaluating stablecoins for remittance efficiency, while Ripple CEO Brad Garlinghouse projects the stablecoin market could grow from $250 billion to $2 trillion.