Jeremy Allaire, co-founder and CEO of Circle, sees dollar signs when he considers a yuan-pegged stablecoin as global trade and finance integrate digital money. Allaire believes that stablecoins are now among the easiest ways to export currency, and China is actively expanding the yuan’s role in global payment systems.
Circle’s CEO spoke in an interview in Hong Kong today, where he highlighted several key points about the future of digital currency in Asia. He predicts that China could launch a yuan-backed stablecoin within 3-5 years. Allaire argues that a stablecoin pegged to the yuan would be more competitive globally than the current central bank digital currency (CBDC), the digital yuan.
Meanwhile, interest in the yuan stablecoin has shifted from speculative interest to strategic implementation since early 2026. Expansion of the Belt and Road Initiative (BRI) and increased… De-dollarization With the development of global trade, position the RMB stablecoin as a non-negotiable instrument for international trade.
The first offshore Chinese yuan stablecoin, AxCNH, has seen increasing adoption in Belt and Road Initiative countries. Notably, AxCNH first appeared in Kazakhstan to facilitate direct trade and evade Western sanctions.
Corporate pressure continues to push for a stable currency linked to the yuan
Corporate pressure continues to push for a yuan-backed stablecoin, with giants such as Ant Group and… JD.com Advocating its effectiveness in improving cross-border payments. JD.com recently reported potential reductions in settlement times to less than 10 seconds and in costs of up to 90%. Owners also have the absolute right to redeem tokens at face value with the base fiat currency within one business day.
In addition, the Hong Kong Monetary Authority granted Anchorpoint Financial, a joint venture involving Standard Chartered and HSBC, the first official licenses for stablecoins on April 10, 2026. Stablecoin issuers are expected to roll out regulated tokens in the second half of this year. They will too He extends It is a standard for corporate issuers who previously avoided unregulated offshore tokens due to counterparty risk.
Alier, Circle’s CEO, also points out that there is a “huge opportunity” for the overseas stable yuan to boost the competitiveness and globalization of the Chinese currency. circle Views An offshore RMB stablecoin as an opportunity to capture trade flows in regions looking for alternatives to the US dollar system.
Hong Kong’s 2026 licensing framework protects issuers of yuan-denominated stablecoins
The Hong Kong 2026 Licensing Framework specifically protects the corporate reserves of RMB stablecoin issuers. These regulated tokens are directly integrated into the city’s treasury and Web3 infrastructure after a license hack in Hong Kong.
The Hong Kong Monetary Authority (HKMA) began issuing official licenses in April 2026, although… Stablecoin law Released in August 2025.
Meanwhile, Hong Kong and Shanghai are emerging as offshore boxes for digital currency ambitions, actively providing regulatory frameworks that legitimize issuers of fiat-backed stablecoins for global trade.
The latest sanctions highlight the vulnerability of relying solely on the US dollar-dominated SWIFT system, prompting market participants to pursue the yuan stablecoin as a “parallel” strategic alternative to international payment channels. The Chinese yuan-backed offshore stablecoin, AxCNH, facilitates trade across more than 150 Belt and Road Initiative countries.
There is also a strong possibility that trade corridors, such as the Middle East to Asia, Singapore to Malaysia, and Hong Kong to China, will turn to regional stablecoins to improve working capital cycles through stablecoin payments.
Direct RMB stablecoin settlements can eliminate double transfer fees incurred when the RMB is routed through the US dollar in traditional cross-border payments.
Emerging markets in Latin America, Africa and Southeast Asia are increasingly turning their focus to yuan stablecoins. These tokens act as a tool to bypass the US dollar, especially in countries where US dollar liquidity is limited.
The Chinese yuan is now viewed as a safe-haven global asset, enhancing the attractiveness of holding it in the form of a stable currency for long-term planning.
On the other hand, media reports describe the yuan’s shift towards stablecoins as a “watershed moment” for overall diversification in the global payments landscape. Market expected A broader rollout of regulated stablecoins by the second half of this year with institutions completing beta testing.
