On August 11, 2025, China Rare Earth Group and Ant Group both said that claims that they were working with the People’s Bank of China (PBoC) to create a rare earth-backed RMB stablecoin were false. Rumors circulated on Chinese social media, purporting that the three groups were collaborating on a revolutionary stablecoin project.
Both companies have called the report false to clarify their stances, as rumors concerning stablecoin technology in China proliferate.
Ant Group, a major Chinese fintech company, quickly responded to the rumors. The company said on Weibo, “Ant Group has never had such plans with the relevant institutions.” We advise people to exercise caution and pay close attention to prevent deception.
This answer came after several articles wrongly said that a stablecoin backed by rare earths was in the works. The company said that the public must not believe false stories, making it clear that there is no such initiative.
China Rare Earth Group, a major player in the global rare earth market, also released a statement denying the charges. The business called the allegations “fabricated” and said they “seriously mislead the public and disrupt financial order.” This harsh criticism shows how sensitive these kinds of statements are, especially since China is the leading producer of rare earths, and tying it to a stablecoin has geopolitical consequences.
Whispers were going around as Chinese corporations became more interested in stablecoin technology, especially for use in international markets. Companies like JD.com and Alibaba have been asking the PBoC for permission to establish a stablecoin based on the offshore yuan. They aim to rival stablecoins backed by the US dollar.
This interest is in line with China and Russia’s larger efforts to reduce the dollar’s importance in global finance. China’s severe ban on trading cryptocurrencies within its borders, on the other hand, keeps such innovations from reaching people in China. Hong Kong has become a testing ground for stablecoin rules.
The Stablecoins Ordinance that Hong Kong passed in May 2025 has made Chinese companies more interested. Stablecoin projects are considering the city’s rules as a potential starting point. Companies like JD.com and Ant Group are looking into ways to use blockchain technology in payment networks.
Edwin Cheung, the CEO of Gate Dubai, said that e-commerce companies are “super excited” about Hong Kong’s system because they see it as a legal and technological mirror for what mainland China wants to do.
China Rare Earth Group and Ant Group both denied the claims, which shows how difficult it is to deal with rumors in China’s carefully controlled financial environment. The PBoC hasn’t said anything about plans for a rare earth-backed stablecoin, even though interest in stablecoins is growing, especially in Hong Kong.
