How China’s increasing crypto curiosity could move the market

• China’s cabinet is considering a roadmap to boost a yuan-backed stablecoin, according to Reuters.
• The increasing appeal to enter the stablecoin market could boost the use of the Yuan and counter US Dollar dominance in the sector.
• China’s hot and cold attitude toward crypto has fueled speculation in previous cycles, driving tokens' prices in the "made in China" crypto category higher.

China may be on the brink of warming up to cryptocurrency and stablecoins, Hong Kong has made more progress than the mainland. US President Donald Trump’s second son, Eric Trump, spoke at Bitcoin Asia, a Bitcoin conference held in Hong Kong. 

The Trump administration's embrace of cryptocurrency and stablecoins has cemented the United States’ position as a leader in crypto. The narrative and focus could shift to China’s cabinet’s roadmap to boost yuan-backed stablecoins, driving gains in the “Made in China” tokens category. 

China’s Yuan-backed stablecoin

Stablecoins retain the advantages of cryptos, low-cost, faster transactions and round-the-clock settlement; over 99% of the sector is pegged to the US Dollar. This likely boosts the “dollar dominance” that rattles Beijing and drives the Chinese administration to support the adoption of yuan-backed stablecoins. 

A report from the Economist highlights the fact that China has sought to end “dollar dominance” and at the summit of the Shanghai Co-operation Organisation in Tianjin on September 1, China, India, Russia, alongside seven other members, promised to settle a greater share of transactions in local currencies. 

China’s currency management has been a point of contention with major trading partners like the United States, with the Yuan-backed stablecoin, Beijing could attempt to challenge the USD’s dominance. 

China’s effect on crypto

A CNN business report shows that despite mainland China’s ban on crypto trading and mining, Hong Kong rolled out new legislation to allow businesses to tap into the $3.8 trillion digital assets market. The legislation will allow licensed businesses to issue stablecoins pegged to fiat currencies like the US Dollar. 

The Hong Kong Monetary Authority (HKMA) set a high bar for stablecoin issuers and will limit licenses to only a “handful” of applicants in the first round of issuance early next year. Beyond Hong Kong’s efforts to boost stablecoin adoption, it supports China’s growing interest. 

If Beijing sets its sights on internationalizing the Yuan amid rising dominance of the US dollar-backed stablecoins, it could loosen the mainland’s grip on capital movement across borders. 

The category of “Made in China” cryptos has a market capitalization of $39.57 billion with TRON, OKB and VeChain (VET) leading as the top three tokens. The 24 hour trade volume of the category exceeds $1 billion, as of September 9. 

Top 5 Made in China cryptos | Source: CoinGecko

The chart tracking the performance of top tokens in the Made in China category identifies a spike in prices on several occasions between December 2024 and August 2025, coinciding with the time when the China crypto narrative of likely adoption or the mainland lifting a ban on virtual assets became relevant on social media platforms like X. 

Performance of top Made in China cryptos | Source: CoinGecko

Despite the ban on cryptos in China, traders in the mainland trade more stablecoins than authorities track, according to the Economist. It is estimated that in 2024, Chinese traders bought $18.6 billion of stablecoins and sold $3.6billion. A large share of the transactions were on Binance, one of the largest centralized crypto exchanges. 

Traders positioning for the narrative could watch TRON, OKB and VET prices closely for gains in the coming weeks. 

Expert commentary on the China crypto narrative

 Jamie Elkaleh, Chief Marketing Officer, Bitget Wallet shared his thoughts on Air China's loyalty partner Wetour's plans to accept XRP payments and China's crypto adoption, in an exclusive interview:

Q. Air China’s loyalty partner Wetour has announced plans to integrate XRP payments. However, strict crypto bans in China mean the service will likely operate only outside the mainland. Any comments on the topic?

Air China’s loyalty partner exploring XRP payments highlights how travel companies are experimenting with digital assets to strengthen customer engagement. It reflects a broader global trend: companies with a large cross-border customer base are increasingly looking to blockchain-based solutions for faster, cheaper settlement. Loyalty and payments are merging into more digital-native experiences, with crypto playing a key role.

Q. China's cabinet is considering a “roadmap” to boost its currency’s usage overseas, according to Reuters. Do you think this could involve a yuan-based stablecoin's expansion to other countries or support for other stablecoins in mainland China?

This underscores a wider push to diversify global settlement beyond the U.S. dollar. Whether this ultimately includes yuan-pegged stablecoins or other digital instruments remains to be seen, but the discussion signals growing recognition of tokenized finance as a strategic tool. Globally, the momentum is clear: stablecoins are emerging as a critical bridge between traditional currencies and digital markets. The evolution of multi-currency-backed models could reshape competition with dollar stablecoins in specific regional trade corridors.

Q. What are your thoughts on crypto adoption in Asia? Do wallets expect that more users will join, is it on the roadmap?

Across Asia, wallets are seeing rising demand as users explore payments, DeFi, and tokenized assets. In markets with strong mobile-first cultures, the wallet experience often becomes the first step into crypto. The biggest drivers are likely to be practical use cases — cheaper remittances, access to yield opportunities, and integration with e-commerce and gaming ecosystems. The overall trend is clear: more users are entering through wallets because they provide a simple, self-custodial entry point to Web3. 

Growth is being led by a handful of standout markets. Singapore and Hong Kong are setting the pace with clear regulatory frameworks that attract both institutional players and retail users. India’s vast demographic base positions it as one of the largest future user markets, while Southeast Asia is seeing rapid uptake through gaming and remittances. Wallets are well positioned to accelerate adoption in these high-growth regions, with overall user bases in Asia projected to expand at a compound annual rate of 25–30% through 2030.