JD.com plans to apply for stablecoin licenses in major global markets, according to founder and chairman Richard Liu.

He announced the initiative during a press briefing in Beijing, citing stablecoins’ potential to improve cross-border payment efficiency.

Liu said the initiative could reduce transaction costs by up to 90% and complete payments in about 10 seconds, offering a faster, cheaper alternative to systems like SWIFT.

JD.com has tested Hong Kong dollar-pegged stablecoins through its subsidiary JD Coinlink, following similar moves by Ant Group.

JD.com also reported strong financial performance, with RMB 301.1 billion (US$41.5 billion) in Q1 revenue and RMB 1,158.8 billion (US$158.8 billion) for 2024 overall.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ E-commerce giants are racing to disrupt the $150 trillion global payments market

JD.com’s stablecoin ambitions are part of a larger competitive shift, as major retail platforms leverage their massive user bases to enter financial services.

Ant Group, through its international unit, is already seeking stablecoin licenses in Hong Kong, Singapore, and Luxembourg, positioning itself at the forefront of this transformation 1.

The financial incentives are substantial. Companies like JD and Ant could reduce payment processing costs by eliminating the 2-3% fees charged by traditional payment networks, potentially saving billions annually on transaction volumes 2.

For context, the stablecoin market has already surpassed $250 billion in capitalization and facilitated over $28 trillion in transaction volume, demonstrating significant adoption despite being in relatively early stages 34.

These retail giants bring unique advantages to the stablecoin space: established trust, massive customer bases, and existing payment infrastructure that can be extended globally without traditional banking limitations.

2️⃣ Cross-border payments are ripe for disruption after decades of minimal innovation

JD.com’s claim that its stablecoin could reduce cross-border payment costs by 90% and settle transactions in 10 seconds highlights the inefficiencies in today’s system.

Traditional international transfers through SWIFT and correspondent banking typically take 3-5 business days to settle and can cost between 4-7% of the transaction value, creating significant friction for global commerce 56.

The impact could be especially significant for emerging markets, where remittance fees can exceed 10% and many businesses struggle with international payment access. Stablecoins have already gained traction in regions with unstable economies as tools for preserving value 5.

By 2024, stablecoin-based payments had already processed $5.6 trillion in on-chain transactions, with remittances and merchant payments growing fastest in practical applications beyond speculative trading 6.

This transformation mirrors previous payment revolutions, like mobile wallets, where initial adoption barriers were eventually overcome as infrastructure matured and consumer experience improved 7.

Recent JD.com developments

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