Summary of Key Points
- •China Poly Group has officially denied any connection to rumored Hong Kong stablecoin projects.
- •The Hong Kong Monetary Authority has confirmed that no stablecoin issuers have been approved.
- •The denial and regulatory stance are not expected to significantly impact major cryptocurrencies like Bitcoin and Ethereum.
China Poly Group Addresses Stablecoin Rumors
China Poly Group, a prominent state-owned conglomerate with interests in real estate and infrastructure, has issued a formal denial regarding any involvement in rumored Hong Kong stablecoin projects. This clarification was made on October 26, 2025. The organization explicitly stated that it holds no equity or business relationships with entities such as "Poly Digital Asset Co., Ltd." or the "Poly Stablecoin Fund."
The group has also issued a statement advising the public to be vigilant and to report any illegal activities associated with these purported organizations. China Poly Group reiterated that neither it nor its subsidiaries have participated in or invested in any stablecoin ventures within Hong Kong.
Clarification on Stablecoin Rumors
In its official statement, China Poly Group aimed to clearly define its position concerning the stablecoin rumors. A portion of the statement read, "Poly Group has not organized or participated in any business or activities related to Hong Kong stablecoins or stablecoin funds." This proactive response demonstrates the company's commitment to addressing misinformation attributed to its name.
Furthermore, the company asserted that any entities registered in Hong Kong using similar names are not affiliated with or hold equity in China Poly Group or its subsidiaries. These declarations are consistent with the conglomerate's historical focus on sectors distinct from cryptocurrency and stablecoin activities.
Implications for the Hong Kong Stablecoin Market
This announcement arrives in the wake of several cautionary regulatory statements from Chinese authorities concerning unapproved private stablecoin initiatives. The Hong Kong Monetary Authority (HKMA) has confirmed that, as part of its regulatory oversight, it has not approved any stablecoin issuers.
While this development might temper speculative expectations for new Hong Kong stablecoins, it underscores China's strategic direction towards promoting state-sanctioned digital currencies, such as the e-CNY. The prevailing regulatory climate for stablecoin projects suggests a concentrated emphasis on centralized digital assets.
No Direct Impact on Major Cryptocurrencies
Despite the ongoing controversy, on-chain data for major cryptocurrencies like Ethereum and Bitcoin has shown no significant shifts. Industry analysts have observed that the total value locked (TVL) and liquidity for prominent crypto assets have remained stable following the announcement.
This news has not triggered any notable changes in decentralized finance (DeFi) protocols. The development primarily affects unauthorized "Poly"-branded stablecoins anticipated in Hong Kong, rather than established digital currencies.
Regulatory and Institutional Context
China's current stance aligns with its broader strategic objective to integrate digital asset innovation within a framework that serves state interests. Previous regulatory actions have prompted several Chinese enterprises to withdraw from private stablecoin endeavors.
This regulatory approach is designed to mitigate the risks associated with decentralized private crypto assets while simultaneously fostering the development of yuan-backed digital instruments. By doing so, China aims to prevent potential financial instability and encourage innovation within controlled operational frameworks.