Chinese Tech Giants Lobby for Offshore Yuan Stablecoin to Challenge U.S. Dollar Dominance

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Chinese technology leaders JD.com and Ant Group are pressing the People’s Bank of China (PBOC) to authorize yuan-pegged stablecoins issued in Hong Kong, aiming to boost the international use of the Chinese currency and counter the growing influence of U.S. dollar-linked stablecoins. This push reflects a strategic effort to expand the yuan’s role in global digital finance and cross-border payments amid increasing competition with the U.S.

Stablecoins are cryptocurrencies pegged to stable assets like fiat currencies. Currently, over 99% of stablecoins are linked to the U.S. dollar, and their blockchain-based technology allows fast, low-cost, and borderless transactions, potentially disrupting traditional financial systems. The global stablecoin market is valued at about $247 billion and is expected to grow to $2 trillion by 2028.

Both JD.com and Ant Group plan to launch stablecoins backed by the Hong Kong dollar following the region’s new legislation effective August 1. However, they argue that yuan-based stablecoins issued offshore—particularly in Hong Kong—are urgently needed to promote the yuan’s internationalization. This would mark a significant policy shift in Beijing’s stance on cryptocurrencies, which were banned domestically in 2021.

Industry voices, such as Wang Yongli of Digital China Information Service Group and former Bank of China official, highlight the strategic risks of the yuan falling behind the dollar in cross-border payments. Currently, the yuan’s share of global payments has dropped to 2.89%, far below the dollar’s dominant 48.46%.

The lobbying coincides with Hong Kong and the U.S. racing to establish regulatory frameworks for stablecoins. Chinese exporters increasingly use dollar-pegged stablecoins like Tether (USDT) due to capital controls and currency volatility risks at home, fueling demand for alternative payment tools.

While the PBOC has yet to officially respond, advisors and officials acknowledge the challenges posed by the digital currency surge and have hinted that offshore yuan stablecoins are under consideration. Ant Group is preparing to seek stablecoin licenses in Hong Kong and Singapore, with JD.com planning similar applications globally to facilitate foreign exchange and cross-border payments.

JD.com also points out that pegging stablecoins to the Hong Kong dollar—tied to the U.S. dollar—does little to promote the yuan’s use, thus proposing a yuan stablecoin issuance pilot first in Hong Kong, then expanded to China’s free trade zones, a suggestion reportedly well received by regulators.

Alpha and Omega Semiconductor Settles Export Violation Case with U.S. Government Over Shipments to Huawei

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Alpha and Omega Semiconductor (AOS) has agreed to pay $4.25 million to settle with the U.S. Department of Commerce for unauthorized shipments of power controllers, smart power stages, and related components to Huawei Technologies in 2019. This occurred after Huawei was placed on the U.S. Entity List, which restricts trade and requires licenses for suppliers shipping controlled items.

Although the shipped items were foreign-designed and manufactured, they were subject to U.S. export controls because AOS exported them from the United States. The U.S. government had been investigating these transactions for over five years. The Justice Department closed its criminal investigation without charges in January 2024, but a civil probe by the Commerce Department continued until the settlement.

AOS emphasized that the resolution does not affect its ongoing operations. The company is headquartered in Sunnyvale, California, and operates fabrication facilities in the U.S. and Asia, including a wafer fab in Hillsboro, Oregon. The U.S. expanded restrictions on Huawei in 2020 to include foreign-produced items shipped to the company.

Thoma Bravo to Acquire Restaurant Tech Firm Olo in $2 Billion All-Cash Deal

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Buyout firm Thoma Bravo has agreed to acquire Olo, a provider of digital ordering and payment solutions for restaurants, in an all-cash transaction valued at approximately $2 billion. The deal offers Olo shareholders $10.25 per share, representing a 65% premium over the stock’s closing price on April 30, before sale rumors emerged. Olo’s shares rose more than 13% in early trading following the announcement.

Founded in 2005 and based in New York, Olo serves over 750 restaurant brands across 88,000 locations worldwide, including chains like Denny’s, P.F. Chang’s, Nando’s, and Cold Stone Creamery. The company became privately held after the acquisition, which is expected to enhance its growth by strengthening its platform and offerings.

Olo has undergone workforce reductions in recent years, cutting about 9% of its employees last year following an 11% reduction in 2023. Despite earlier losses, the company improved profitability with a net income of $1.81 million in the first quarter of 2025. As of December 2024, Olo employed 617 staff in the U.S.

Thoma Bravo, a major software-focused investment firm managing roughly $184 billion in assets, expects to finalize the acquisition by the end of 2025. Olo faces a termination fee of $73.7 million in cash if the deal falls through under specific conditions. Goldman Sachs is serving as Olo’s exclusive financial adviser.