AnchorX Launches AxHKD Stablecoin on Conflux

Fintech company based in Hong Kong Anchor We have built AxHKD, the first HKD-backed stablecoin to be launched on Conflux Network. Conflux Network played a pivotal role in the successful beta testing of AxHKD. This collaboration between Conflux Network, China’s only regulatory compliant public blockchain, and AnchorX, a local fintech company, marks a significant step forward in increasing the practicality of digital currencies in everyday transactions.

Background: Conflux It serves as a conduit for decentralized economies, border and protocol connectivity. Unparalleled functionality and proven compliance in China provide a distinct advantage for projects looking to establish and grow their presence in the Asian market.

Notably, Conflux has previously collaborated with renowned global brands and local government agencies on blockchain and metaverse initiatives. These partnerships include notable entities such as the City of Shanghai, World Mobile, McDonald’s China, and Oreo.

Collaboration with AnchorX It highlights Conflux Network’s commitment to providing cutting-edge technology solutions that boast superior scalability, security, low latency, and cost-effectiveness. Conflux Network leverages these properties to help AnchorX launch AxHKD by ensuring robust distributed ledger technology and cybersecurity measures.

• Fan Long, founder of Conflux, said about the partnership with AnchorX to launch AxHKD on Conflux Network: work.”

• “AxHKD is ready to play a pivotal role in driving innovation and financial inclusion by incorporating the Hong Kong dollar into the fabric of the Web3 ecosystem,” Fan added.

AxHKD is designed to maintain a 1:1 peg with HKD., which is backed by high-quality liquid asset reserves held by regulated financial institutions in Hong Kong through segregated trust agreements. AnchorX’s strategic partner, OKLink Trust, provides custodian services for AxHKD issuance, ensuring the security and integrity of the stablecoin.

Strategic importance of AxHKD It extends beyond stability and security. AnchorX envisions two main applications for its stablecoin:

• First, as a catalyst for global payments, AxHKD facilitates cross-border transactions between Hong Kong/mainland China and global markets, especially benefiting Belt and Road partners with less developed banking infrastructure.
• Second, AxHKD serves as a reliable fiat on-chain tool for virtual asset trading, promoting innovation in real-world assets and bridging the gap between traditional and digital assets in Hong Kong.

Byron Wong, Chief Compliance Officer at AnchorX “Hong Kong has adopted one of the most proactive approaches to stablecoin regulation globally. We want to ensure that AxHKD is closely aligned with the proposed stablecoin standard.”

“We will be seeking applications for participation in the upcoming regulatory sandbox and hope to provide direct practical insight into shaping a successful stablecoin regulatory regime,” Byron added.

Big picture: The announcement comes amid recent initiatives by Hong Kong authorities to propose a regulatory regime for stablecoin issuers. The Department of Financial Services and Treasury, in collaboration with the Hong Kong Monetary Authority (HKMA), has published a consultation paper to gather public comments on the proposed legislation in December 2023. This regulatory momentum highlights that stablecoins are increasingly recognized as an essential component of the financial ecosystem.

Read also: Conflux Network further strengthens its role as the underlying infrastructure for Web3 and Metaverse in China.