Chinese sportswear giant 361 Degrees is exploring stablecoin payment solutions for non-mainland China sales, aiming for increased efficiency, reduced costs, and mitigated foreign exchange risks.

Executive Summary

361 Degrees (01361.HK), a prominent listed company, is exploring the integration of stablecoin solutions for payments and settlements related to its product sales outside mainland China. This strategic move is intended to cover operations across overseas physical stores, e-commerce platforms, supply chain services, and digital ecosystem businesses. The primary objectives include enhancing payment efficiency, reducing operational costs, and mitigating foreign exchange rate risks inherent in international transactions. The company has already opened an account with a specialized third-party service provider focused on fiat and stablecoin digital payment solutions, signaling concrete steps towards implementation.

The Event in Detail: Stablecoin Integration Strategy

361 Degrees aims to utilize stablecoins to streamline its cross-border financial operations. The core financial mechanics involve leveraging stablecoins to facilitate quicker and more economical transfers compared to traditional banking systems. This is particularly relevant for managing diverse international revenue streams and supplier payments. The anticipated benefits, as outlined by the company, include a significant improvement in payment processing speed and a reduction in the fees associated with international remittances. Furthermore, by transacting in stablecoins, 361 Degrees seeks to minimize exposure to fluctuating fiat currency exchange rates, thereby providing greater financial predictability for its overseas ventures. The engagement of a third-party service provider underscores a methodical approach to adopting this advanced payment technology.

Market Implications and Strategic Parallels

This initiative by 361 Degrees aligns with a broader corporate trend towards the adoption of digital assets for cross-border financial operations. JD.com, for instance, is actively pursuing a stablecoin licensing strategy to revolutionize its global cross-border payments, aiming to cut transaction costs by up to 90% and reduce settlement times to under 10 seconds. Their subsidiary, Jingdong Technology, has been piloting stablecoin use cases for cross-border supplier payments within Hong Kong's fintech sandbox. Similarly, Alchemy Pay has partnered with Fiat24 to power its Web3 Digital Bank service, offering global users Swiss IBAN bank accounts and Master Debit cards, bridging traditional finance with blockchain technology under a regulated framework. Fireblocks has also launched its Fireblocks Network for Payments, which processes over $200 billion in monthly stablecoin transaction volume across more than 100 countries, facilitating merchant settlement, international remittances, and cross-border treasury operations for institutions. These examples collectively demonstrate a growing industry-wide recognition of stablecoins as a tool for enhanced efficiency, cost reduction, and improved transparency in global financial transactions, presenting a viable alternative to legacy systems.

Broader Context: Digital Currencies in Global Trade

The strategic exploration by 361 Degrees occurs within a burgeoning landscape of digital currency adoption for international trade. The People's Bank of China (PBoC), for example, has announced that its digital RMB cross-border settlement system will connect with ten ASEAN nations and six Middle Eastern countries. This system is designed to significantly reduce transaction times from several days to mere seconds and has demonstrated fee reductions of up to 98% in pilot projects. Such developments signify a global shift towards digital currencies, including stablecoins and Central Bank Digital Currencies (CBDCs), as efficient and cost-effective solutions for international financial flows. The increasing confidence and adoption by publicly listed companies like 361 Degrees highlight the growing mainstream acceptance of stablecoins, potentially influencing future regulatory frameworks and accelerating the integration of digital assets into the global financial ecosystem.