China Blockchain and Web3 in 2025
China's approach to blockchain and Web3 in 2025 is characterized by a clear policy bifurcation: the mainland promotes government-sanctioned blockchain applications while restricting decentralized crypto, while Hong Kong positions itself as an international virtual asset hub. The digital yuan (e-CNY) has reached 12 trillion RMB ($1.7 trillion) in cumulative transactions across 26 pilot cities, with integration into government services, social welfare, and cross-border trade settlement. Enterprise blockchain adoption has accelerated, with AntChain, WeBank's FISCO BCOS, and Baidu's XuperChain powering supply chain finance, trade finance, and government services for thousands of enterprises. Digital collectibles (China's version of NFTs) have found product-market fit in ticketing, membership programs, and cultural heritage, with Tencent's Zhixinbaowu and Alipay's digital collectibles platform serving over 50 million users combined. This report examines the mainland-Hong Kong dual-track model, key platforms, and future trajectory.
TL;DR
Digital yuan transactions reached 12 trillion RMB cumulative. Enterprise blockchain serves thousands of companies. Digital collectibles platforms serve 50 million users. Hong Kong licensed 8 virtual asset trading platforms. Cross-border e-CNY settlement tested with 6 countries.
Key Insights
e-CNY Cumulative Transactions
The digital yuan has processed 12 trillion RMB ($1.7 trillion) in cumulative transactions across 26 pilot cities, with 180 million wallet users and integration into social welfare, government payments, and cross-border trade.
Enterprise Blockchain Platforms
Over 5,000 Chinese enterprises use blockchain for supply chain finance, trade finance, and government services. AntChain leads with 300+ enterprise clients, followed by FISCO BCOS with 200+ financial institutions.
Digital Collectibles Users
China's regulated digital collectibles market serves over 50 million users across platforms like Tencent's Zhixinbaowu and Alipay's digital collectibles, with primary applications in cultural heritage, ticketing, and brand loyalty programs.
Hong Kong Crypto Hub
Hong Kong has licensed 8 virtual asset trading platforms including HashKey Exchange and OSL, with 20+ applications pending. The city's crypto regulatory framework attracts global Web3 companies seeking Asian market access.
Cross-Border e-CNY Settlement
China has tested e-CNY cross-border settlement with 6 countries including Thailand, UAE, and Russia, exploring CBDC bridge technology for instant, low-cost international payments bypassing traditional correspondent banking.
Side-by-Side Comparison
| Segment | Status | Scale | Leading Players | Regulatory Framework |
|---|---|---|---|---|
| Digital Yuan (e-CNY) | Pilot expansion | 12T RMB cumulative | PBOC, 6 major banks | CBDC pilot regulation |
| Enterprise Blockchain | Mainstream adoption | 5,000+ enterprises | AntChain, FISCO BCOS | Blockchain info service rules |
| Digital Collectibles | Regulated growth | 50M+ users | Tencent, Alipay | No secondary trading allowed |
| Hong Kong Crypto | Licensed expansion | 8 VATPs licensed | HashKey, OSL | SFC licensing regime |
| Cross-border CBDC | Testing phase | 6 country trials | mBridge consortium | BIS coordination |
Frequently Asked Questions
China's digital collectibles operate under strict regulations that prohibit secondary market speculation. Unlike global NFTs traded on marketplaces like OpenSea, Chinese digital collectibles are purchased directly from issuers at fixed prices and cannot be resold on secondary markets. They function more like digital certificates of authenticity or membership passes. This approach eliminates speculation while preserving utility in ticketing, brand loyalty, and cultural heritage preservation.
The digital yuan is integrated into major payment apps including WeChat Pay, Alipay, and banking apps across 26 pilot cities. Common use cases include government salary payments, social welfare disbursement, public transit fares, utility bill payments, and cross-border trade settlement. However, everyday consumer adoption remains limited compared to WeChat Pay and Alipay, as most users see little practical advantage over existing mobile payment methods. The government is driving adoption through subsidies and government service integration.
China banned cryptocurrency trading and mining in 2021 to maintain financial stability, prevent capital flight, and protect retail investors from speculation. However, the government recognizes blockchain's value for supply chain management, trade finance, and government efficiency. The strategy is to promote blockchain as infrastructure technology while controlling financial applications that could challenge monetary sovereignty or create systemic risk.
Hong Kong serves as China's controlled gateway to the global crypto and Web3 industry. While the mainland prohibits crypto trading, Hong Kong has established a comprehensive virtual asset regulatory framework under SFC oversight. This allows global Web3 companies to serve the Chinese market indirectly through Hong Kong, while giving China a window into crypto innovation and regulation. Hong Kong's approach balances innovation with investor protection through mandatory licensing, custody requirements, and retail trading restrictions.