Hi Fintech friends,

Hope all is well. Let's catch you up on the latest China fintech news from the past two weeks!

The Coin Related

Mainland China’s crypto ban remains, with increasing warnings about risks from digital assets. But quietly, officials in Shanghai are now discussing stablecoins—showing early signs Beijing may be rethinking things, at least a little.

Chinese policymakers see stablecoins as both a "Double-Edged Sword". On one side, U.S.-backed stablecoins could deepen the dollar’s global reach, nudging out the yuan. On the other, a yuan-backed stablecoin could help China’s currency go global but comes with big risks for financial control. It’ might be a dilemma for Beijing—how to leverage the technology without losing grip at home.

Meanwhile, Hong Kong is enforcing Asia’s first comprehensive stablecoin ordinance from August 1. It’s tempting to think Hong Kong is a test kitchen for the mainland, so, we will watch the developments there closely.

• Kun has bagged $50 million to scale its stablecoin-powered cross-border payments
• Binance now supports tokenized real-world assets—USYC and CUSDO—for off-exchange settlement.
• Coins.ph and HashKey launched a crypto remittance corridor between the Philippines and Hong Kong.

Licensing & Regulations

• Airwallex, together with Revolut, Rapyd and Mesh, has been granted with payment license in Israel.
• China and Egypt inked a deal to settle trade directly in yuan and EGP, bypassing the US dollar.
• China Merchants Bank International Securities  secured a crypto license in Hong Kong.
• Singapore based Chocolate Finance has received regulatory approval to operate in Hong Kong.

Financing & Acquisition

• Singapore-based loyalty and travel rewards platform Heymax acquired Hong Kong payments startup Krip, expanding further in Asia.

Product & Partnership Launches

• Citi and Ant International are testing an AI-powered FX tool to help corporate clients cut hedging costs.
• PhotonPay added a physical Mastercard commercial credit card to its global B2B payments offering.