Chinese e-commerce giant JD.com plans to make an international foray into stablecoins – cryptocurrencies backed by a reference asset, typically a fiat currency like the US dollar – as these tokens are poised to become a major cross-border payment tool, according to founder and chairman Richard Liu Qiangdong. “JD.com intends to secure stablecoin licences across key currency markets globally … to reduce cross-border transaction costs by 90 per cent,” Liu said in a media briefing on Tuesday. “We hope that JD stablecoin will become a universal payment method worldwide.” The announcement reflects Beijing-based JD.com’s confidence in the growing regulation of these virtual assets, nearly a month after Hong Kong passed a new stablecoin law that will take effect on August 1. The law requires stablecoin issuers in the city to obtain a licence from the Hong Kong Monetary Authority. Jingdong Coinlink Technology, a subsidiary of JD.com, recently emerged as one of the bigger players in this space. The company, a participant in the city’s regulatory sandbox trial, is preparing to launch stablecoins pegged to both the Hong Kong dollar and the US dollar. “I believe stablecoins will become the next-generation payment system – that is beyond doubt,” Jingdong Coinlink CEO Teddy Liu said at an event in Hong Kong earlier this month. He said the company may even issue an offshore yuan stablecoin, but added that it would only come with Beijing’s approval. In his keynote speech at the Lujiazui Forum in Shanghai on Wednesday, People’s Bank of China Governor Pan Gongsheng acknowledged the positive role of stablecoins, pointing out that these virtual assets are reshaping the global payment system and shortening cross-border payment cycles. Still, Beiijing authorities continue to enforce a strict domestic ban against cryptocurrencies such as bitcoin. The US Senate, meanwhile, passed stablecoin legislation that sets up regulatory rules for cryptocurrencies pegged to the dollar. The US House of Representatives has been pursuing its own legislation, including a more sweeping measure to regulate the broader cryptocurrency market. House lawmakers must now decide whether to take up the Senate bill or negotiate a compromise measure. Singapore finalised its regulatory framework for stablecoins in June 2024. That came a year after the Monetary Authority of Singapore first announced the city state’s new regulatory framework. On Tuesday, Liu also said international expansion was a priority for JD.com, which expects to launch operations in Europe next year. Unlike the cross-border e-commerce operations of Temu and Shein, Liu said JD.com will build up local teams, sourcing and distribution in overseas markets. JD.com aims to bring 1,000 Chinese brands to global markets within five years. In addition, JD.com will expand its travel services business, according to Liu. JD.com’s app already covers hotel and airline reservations, ticket purchases and train bookings. The company faces strong competition in the online travel market, where popular players include Trip.com and Fliggy – a unit of Alibaba Group Holding, owner of the South China Morning Post. In its mainland delivery operations, JD.com has recruited more than 120,000 full-time riders within just three-and-a-half months, according to Liu. He projected the company’s total workforce to number around 900,000 by the end of the second quarter. JD.com reported strong first-quarter financial results, with net revenue up 15.8 per cent year on year to 301.1 billion yuan (US$42 billion) and a 53 per cent increase in net profit attributable to ordinary shareholders to 10.9 billion yuan. The Hong Kong-listed shares of JD.com closed down 1.60 per cent to HK$129.40 on Wednesday.