China Poly Group Denies Involvement in Stablecoin Projects

TLDR

• China Poly Group denies ties to Hong Kong stablecoin projects.
• No stablecoin issuer approved by Hong Kong Monetary Authority.
• No impact on major cryptocurrencies like Bitcoin and Ethereum.

China Poly Group has formally denied any involvement in the rumored Hong Kong stablecoin projects. The state-owned conglomerate, known for its ventures in real estate and infrastructure, addressed the claims on October 26, 2025. The organization has made it clear that it has no equity or business relationships with entities such as “Poly Digital Asset Co., Ltd.” or the “Poly Stablecoin Fund.”

The group issued a statement urging the public to exercise caution and report any illegal activities associated with these organizations. The company emphasized that it and its subsidiaries have not participated or invested in any stablecoin ventures in Hong Kong.

China Poly Group’s Clarification on Stablecoin Rumors

China Poly Group’s official statement sought to clarify its position on the matter. “Poly Group has not organized or participated in any business or activities related to Hong Kong stablecoins or stablecoin funds,” read a part of the statement. This shows the firm’s proactive approach in addressing false claims attributed to its name.

The company further asserted that any entities registered in Hong Kong under related names do not have any affiliation or equity ties with China Poly Group or its subsidiaries. These assertions align with the conglomerate’s history in sectors unrelated to cryptocurrency or stablecoin activities.

Implications for the Hong Kong Stablecoin Market

This announcement follows a series of regulatory cautions from Chinese authorities against unapproved private stablecoin projects. The Hong Kong Monetary Authority (HKMA) confirmed that it has not approved any stablecoin issuer as part of its regulatory checks and balances.

While this may reduce speculative expectations for new Hong Kong stablecoins, it reaffirms China’s strategic move towards promoting state-sanctioned digital currencies, such as the e-CNY. The regulatory environment around stablecoin initiatives suggests a concentrated focus on centralized digital assets.

No Direct Impact on Major Cryptocurrencies

Despite the controversy, no significant changes have been detected in the on-chain data for mainstream cryptocurrencies like Ethereum and Bitcoin. Industry analysts have noted that TVL and liquidity for major crypto assets have remained stable following the announcement.

The development has not led to shifts in DeFi protocols either. The news affects primarily unauthorized “Poly”-branded stablecoins expected in Hong Kong rather than established digital currencies.

Regulatory and Institutional Context

China’s stance reflects a broader strategy to consolidate digital asset innovation into a framework that aligns with state interests. Past regulatory actions have directed several Chinese enterprises to exit private stablecoin endeavors.

This regulatory position aims to mitigate risks associated with decentralized private crypto assets while promoting yuan-backed digital instruments. By doing so, China steers clear of potential financial instability and encourages innovation within controlled infrastructural boundaries.