The Central Bank of China and seven other agencies issued a formal ban on the offshore issuance of yuan‑pegged stablecoins without prior authorization and expanded restrictions on real‑world‑asset (RWA) tokenization. The move is aimed at reinforcing renminbi stability and tightening capital‑flow controls while steering digital currency activity toward the state‑backed digital yuan (e‑CNY).
The package, led by the People’s Bank of China and seven regulators, explicitly prohibits domestic and foreign entities from issuing yuan‑pegged stablecoins overseas without authorization. It also bans onshore RWA tokenization and establishes a filing‑based vetting process for any cross‑border projects that seek to tokenize Chinese assets for international use. Regulators framed the steps as necessary to prevent illicit capital outflows, limit shadow financial channels and preserve monetary sovereignty.
Authorities signalled that the rules are both defensive, by reducing channels that could weaken central control over liquidity, and strategic, channeling innovation into state‑controlled rails such as the e‑CNY.
The measures matter for traders, treasury managers and crypto market participants because they remove unregulated yuan liquidity options offshore and impose a filing‑based approval regime for cross‑border tokenization of Chinese onshore assets, altering how RMB liquidity and tokenized assets circulate internationally.
Metrics, e‑CNY changes and immediate market effects
China has already moved well beyond experimentation in expanding the role of the e-CNY in everyday payments. By the end of November 2025, the digital yuan had processed more than 3.48 billion transactions worth roughly $2.38 trillion. Domestic usage alone reached 16.7 trillion yuan in 2024, marking an 800% jump from the previous year. Starting January 1, 2026, e-CNY wallets also began accruing interest at an annual rate of 0.05%, further reinforcing their appeal within the formal financial system.
At the same time, regulatory actions are reshaping the broader yuan ecosystem. Offshore RMB liquidity has tightened as regulators create a more constrained supply environment for yuan-linked instruments outside China. Cross-border tokenization efforts, particularly those involving real-world assets, are now subject to filing and approval requirements, adding both cost and time to compliance.
Together with the introduction of interest-bearing e-CNY wallets and the scale of transaction volumes, these measures position the digital yuan as a clear, state-backed alternative to private stablecoins. As a result, projects tied to Asian currency pegs are facing heightened regulatory scrutiny, even though major global stablecoins have so far reported only limited direct impact.
Market participants and analysts have pointed to a growing liquidity gap in offshore RMB markets following these announcements. In response, some trading activity may shift toward dollar-pegged assets and spot crypto markets, including USDT and Bitcoin, as participants look for non-state liquidity channels.
For traders and corporate treasuries, the immediate takeaway is the rising importance of compliance and operational risk management: offshore RMB providers and firms planning cross-border tokenization now need to build regulatory approval into both product design and funding strategies. For policymakers, however, these interventions strengthen China’s ability to manage capital flows while accelerating institutional adoption of the e-CNY.
