A Yuan-Backed Stablecoin Could Shift Global Trade Finance Within Five Years
Cross-border transactions would become faster and cheaper for those using a yuan-backed stablecoin. This digital asset would be pegged to the yuan and designed to compete with dollar-pegged stablecoins like USDC, which grew 72% year-on-year to $75.3 billion in circulation by the end of 2025. Circle CEO Jeremy Allaire says a yuan-backed stablecoin could enter global markets within three to five years. Hong Kong, a key hub for cross-border payments, is identified as a potential partner for integrating yuan and Hong Kong dollar stablecoins into global platforms. The move would expand the yuan's role in the global financial system.
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