JD.com Eyes Global Expansion through Stablecoin Initiative

In Brief

• JD.com plans applications for stablecoin licenses across major economies.
• Initial focus is on B2B payments, with a view to consumer adoption later.
• This move is part of JD.com’s strategy to overcome “five lost years” of stagnation.

At a press conference in Beijing on Tuesday, JD.com founder and Chairman Richard Liu announced the company’s plan to seek stablecoin licenses globally. Liu emphasized that this initiative aims to lower the cost and time of international payments.

JD.com’s Global Ambition

Liu stated the company intends to launch stablecoin services worldwide, beginning with business-to-business transactions.

“We aim to apply for our stablecoin license in all major sovereign currency countries,” Liu said. “Our vision is that one day, people around the world will be able to use JD’s local coins for global payments.“

According to Liu, stablecoins could drastically decrease settlement periods, potentially below ten seconds, and slash payment expenses by as much as 90%.

Reversing Stagnation

Liu characterized the company’s previous decade as a “five lost years” period defined by inadequate innovation and weak expansion. The stablecoin effort is one of numerous strategic shifts for JD.com, alongside forays into food delivery and travel.

Broadening Global Momentum

The company’s stablecoin drive occurs concurrently with increasing worldwide interest in the technology. On Tuesday, the U.S. Senate passed the GENIUS Act, a pivotal measure establishing rules for stablecoin issuance and trading, receiving support from 68 senators to 30.

This legislation has attracted attention from major financial institutions, retailers, and technology corporations. Entities including Amazon, Walmart, and Citigroup are actively investigating stablecoin applications.

Critical Concerns Emerge

Despite the progress, stablecoins have drawn criticism. Senator Elizabeth Warren has voiced concerns the GENIUS Act creates a pathway for tech behemoths to introduce surveillance-based financial tools.

“If Congress doesn’t fix it, billionaires like Elon Musk, Jeff Bezos, and Mark Zuckerberg could launch stablecoins that track your purchases… and squeeze out competitors,” Warren previously told Decrypt.

Furthermore, she added: “Then they’ll come begging for a bailout when it inevitably blows up.”

Others point out that stablecoins typically offer minimal value to users, as they don’t provide interest returns despite allowing issuers access to customer funds. Philippe Laffont, Coatue Management founder, called for stablecoins to offer market-linked yields.

Unclear Timelines and Jurisdictions

JD.com did not detail a specific launch schedule or indicate preferred jurisdictions for its stablecoin operations. The company framed the initiative as an “overseas project,” suggesting no immediate plans for deployment in China.

When queried about the details, JD.com declined to offer an immediate response.