China's leading technology companies, including JD.com and Alibaba's fintech affiliate Ant Group, are actively lobbying the People's Bank of China to authorize the issuance of yuan-based stablecoins. These proposed stablecoins would be issued offshore, specifically in Hong Kong, and pegged to the offshore yuan. The initiative aims to enhance the global role of the yuan and provide an alternative to the dominance of US dollar-linked stablecoins in digital payments and cross-border transactions. Sources familiar with the discussions indicated that these companies view reliance on US dollar stablecoins, such as USDT, as unsustainable for the future of cross-border payments. This move reflects a strategic effort by Chinese tech giants to promote the yuan's international influence amid growing competition in the digital currency space.