Conflux Network launches Hong Kong dollar-backed stablecoin AxHKD

adminMarch 9, 2024

Toronto, Canada, March 8, 2024, Chainwire

Conflux Network, the only regulated public blockchain in China, today announced its pivotal role in supporting the successful beta testing of AxHKD, a Hong Kong dollar (HKD)-backed stablecoin. Built by local fintech company AnchorX, the stablecoin will initially launch on Conflux Network and then on Ethereum.

Conflux provides foundational technology with great scalability, security, low latency, and cost-effectiveness. With this launch, AnchorX aims to become Asia’s most trusted digital currency solutions provider, supporting a stable and efficient global exchange.

AxHKD will initially launch on the Conflux public blockchain, leveraging world-class distributed ledger technology and robust cybersecurity measures. We guarantee a 1:1 peg to HKD based on high-quality liquid asset holdings. These reserves are secured by segregated trust agreements and held by regulated financial institutions in Hong Kong. AnchorX’s strategic partner, OKLink Trust, provides management services for AxHKD issuance.

AnchorX targets two main applications of AxHKD: First, AxHKD is a catalyst for global payments, enhancing cross-border transactions between Hong Kong/Mainland China and global markets. This is especially useful for Belt and Road partners with less developed banking infrastructure. Second, AxHKD serves as a trusted fiat on-chain tool for virtual asset trading, paving the way for innovation in real-world assets and bridging the gap between traditional and digital assets in Hong Kong.

The project is supported by industry leaders in traditional finance and blockchain technology, including Hony Capital, China’s leading investment management firm overseeing over $16 billion in assets.

The announcement follows recent plans by Hong Kong authorities to propose a regulatory regime for stablecoin issuers. On December 27, 2023, the Department of Financial Services and Treasury, in collaboration with the Hong Kong Monetary Authority (“HKMA”), published a consultation paper to gather public comments on proposed legislation to regulate stablecoin issuers. This document builds on the discussion paper published by the HKMA in January 2022 and the follow-up conclusions document in January 2023.

AnchorX Chief Compliance Officer Byron Wong commented on the company’s firm commitment to complying with regulatory standards: “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 standards. We will also be seeking applications for participation in the upcoming regulatory sandbox and hope to provide direct practical insight into shaping a successful stablecoin regulatory framework.”

“We are very excited to partner with AnchorX to launch AxHKD on Conflux Network,” said Fan Long, founder of Conflux. This collaboration represents an important milestone in the convergence of traditional finance and Web3 spheres, improving the practicality of digital currencies in everyday transactions. 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.”

Introduction to Conflux

Conflux Network is a permissionless layer 1 blockchain that connects decentralized economies across borders and protocols. Utilizes a hybrid PoW/PoS consensus mechanism to ensure a fast, secure, and scalable blockchain environment. Using Conflux eliminates congestion, keeps fees low, and improves network security.

As China’s leading regulatory compliant public blockchain, Conflux offers distinct advantages to projects looking to enter the Asian market. The platform partners with renowned global brands and government agencies in the region to drive blockchain and metaverse initiatives. Notable partnerships include the city of Shanghai, China Telecom, Little Red Book (China’s “Instagram”), McDonald’s China, and Oreo. Learn more: https://confluxnetwork.org/

About AnchorX

AnchorX is a Hong Kong-based fintech company with a vision to become Asia’s most trusted digital solutions provider. Learn more: https://www.anchorx.org/ or https://twitter.com/AnchorX_Ltd