Key Takeaways
- JD.com aims to secure stablecoin licenses in major economies to enable fast, low-cost, cross-border B2B payments.
- The company’s chairman claimed that their stablecoin system may reduce transaction times from days to seconds and cut costs by 90%.
- The initiative targets inefficiencies in the traditionally used SWIFT system by replacing it with blockchain-based, instant settlements.
- JD is already testing its stablecoin through Jingdong Technology in Hong Kong’s fintech sandbox, using its proprietary blockchain, Zhizhen Chain, which handles over $7 billion in annual transactions.
- The company joins a growing list of tech giants, such as Amazon and Walmart, that are developing stablecoin solutions. However, unlike others, JD.com benefits from a large user base and a vast logistics network spread across 20 countries.
- The move could accelerate stablecoin adoption and reshape global finance, especially in trade and remittances
The Giant Aims to Secure Multi-Jurisdiction Regulatory Approval
Chinese e-commerce giant JD.com plans to secure stablecoin licenses across major economies, aiming to reduce international transaction times from days to seconds, while slashing costs by 90 percent. “One day, we hope global consumers will be able to use JD’s coin for seamless international transactions,” said the company’s Chairman Liu Qiangdong at a corporate session in Beijing.
The initiative targets the inefficiencies plaguing the current SWIFT cross-border transaction system, which typically requires 2-4 days to complete transactions and carries substantial fees.
JD.com’s plan to enter the stablecoin space aligns with the fast-developing regulation surrounding dollar-pegged stablecoins in the US, which has spurred similar conversations in other parts of the world.
Initially targeting business-to-business (B2B) transactions, JD’s stablecoin plans could eventually extend to consumer payments. “After B-side payment is completed, we can move toward C-side payment,” Liu noted, hinting at broader retail ambitions. Liu further added that their ambitious project may face challenges and even fail, but said that is “how business works.”
Hong Kong Pilot Program Shows Early Promise
The company has already begun testing its stablecoin concept through subsidiary Jingdong Technology, which operates within Hong Kong’s fintech regulatory sandbox since Q1 2024. This pilot program focuses on cross-border supplier payments using the company’s proprietary Zhizhen Chain blockchain platform.
Zhizhen Chain currently processes over $7 billion annually in supply chain finance transactions, providing a robust foundation for stablecoin operations. The approach mirrors Ant Group’s strategy of developing blockchain technology internally before commercializing it externally.
Competitive Race Intensifies Among Tech Giants
JD.com joins an increasingly competitive economy of stablecoins. Chinese rival Ant Group also seeks to get Hong Kong stablecoin licensing, while Amazon is reportedly investigating stablecoin solutions for marketplace settlements. Walmart also holds blockchain patents, suggestive of payment system development.
However, unlike others, JD.com possesses significant competitive advantages through its expansive ecosystem. The company serves nearly 600 million active users and operates logistics networks across 20 countries, creating natural adoption pathways.
Market Implications for Crypto Investors
The success of JD.com’s stablecoin initiative could reshape global payment infrastructure and create new investment opportunities in blockchain-based financial services. The company’s established user base and supply chains provide built-in demand for its digital currency, potentially accelerating stablecoin adoption.
Industry analysts view the move as validation of blockchain technology’s growing importance. JD.com’s entry into stablecoins signals increasing institutional confidence in digital payment solutions and could drive broader corporate adoption.
Read More: Stablecoins Drive Corporate Adoption of Digital Finance Revolution in the US
