JD.com targets Stablecoin licences to cut cross-border payment costs The Block – Crypto News

Speaking to Observer Network and other media outlets during a 50-minute session on June 17 in Beijing, JD.com founder and chairman Liu Qiangdong revealed the retail giant is actively pursuing regulatory approval for stablecoin operations in “all major sovereign currency countries globally.”

The blockchain-focused announcement represents one of the most significant digital currency initiatives from a major Chinese corporation in recent years.

Targeting a 90% cost reduction in cross-border payments

Liu outlined an ambitious vision where JD.com’s stablecoin infrastructure could transform international commerce.

“We hope to apply for stablecoin licenses in all major sovereign currency countries globally, then through stablecoin licenses achieve global enterprise-to-enterprise currency exchange, reducing global cross-border payment costs by 90% and improving efficiency to in 10 seconds,” Liu said during the session.

The proposed system would represent an improvement on existing international payment rails. Current enterprise-to-enterprise transactions using the SWIFT system typically require “an average of 2-4 days [and come] with high costs,” according to Liu.

The JD.com stablecoin solution promises to complete cross-border payments “in 10 seconds” and cut fees by nine-tenths.

Phased rollout strategy: B2B first, consumer payments later

The company plans a gradual approach to implementations of the stablecoin strategy, beginning with business-to-business transactions before expanding to consumer applications. “After B2B payments, we can penetrate C2C payments,” Liu explained, suggesting the ultimate goal is widespread adoption in JD.com’s ecosystem.

Liu expressed particular optimism about potential in the consumer sector, saying: “We hope one day when consuming worldwide, people use JD local currency for global payments.” However, the timeline for eventual consumer rollout remains unclear.

Regulatory challenges and global expansion

The stablecoin initiative represents a notable regulatory undertaking, requiring compliance with financial regulations in multiple jurisdictions. Liu’s commitment to securing licences in “all major sovereign currency countries” suggests JD.com is prepared for a complex, multi-year regulatory approval process.

The approach aligns with JD.com’s broader international expansion strategy, which Liu described as deliberately methodical. The company has spent three years building logistics infrastructure in Europe and plans to begin full operations on the continent next year, after four years of preparatory work.

“JD’s business model isn’t good in that it’s slow, hard, tiring. You have to work on technology for several years before you can do business,” Liu acknowledged.

Context of JD.com’s innovation push

The stablecoin announcement comes as Liu attempts to revitalise JD.com following what he candidly described as a “lost five years” lacking innovation. Since returning to active leadership in October 2023 after a period of semi-retirement, Liu has pushed multiple new initiatives, including aggressive expansion into food delivery and plans for hotel and tourism services.

“We’ll persist in having innovation every year in the future,” Liu stated, positioning the stablecoin project among “about six innovation projects in the next year and a half.” However, he tempered expectations by noting that “not all these innovation projects can succeed” and some “might fail, losing time and money.”

Supply chain integration strategy

The stablecoin initiative fits in JD.com’s strategy of building supply chain solutions. Liu emphasised that “100% of JD’s businesses revolve around supply chain,” suggesting the payment infrastructure could eventually support the company’s logistics and procurement operations globally.

With JD.com reporting platform transaction volume exceeding 4 trillion yuan (approximately US$550 billion) in 2024 and net revenue of 1.158 trillion yuan, the company has substantial transaction volume that could benefit from reduced payment friction.

Market implications and competitive landscape

JD.com’s stablecoin ambitions come as traditional payment providers face increasing pressure from blockchain-based alternatives. The company’s focus on enterprise payments initially may help avoid some regulatory scrutiny that consumer-focused cryptocurrency projects have faced.

However, the success of JD.com’s stablecoin initiative will depend heavily on regulatory approval across the globe, technological execution, and merchant adoption. Liu’s acknowledgement that some innovation projects “might fail” suggests the company recognises the inherent risks to the acceptance and resilience of blockchain payment infrastructure.

The announcement positions JD.com among a growing number of major corporations exploring stablecoin applications for international commerce, though few have committed to the global licensing approach Liu outlined.

(Photo by JD.com’s corporate blog)

See also: Hong Kong stablecoin regulation: New cryptocurrency law explained