Stablecoin Introduced by Conflux for Enhanced Payment Options in Belt and Road Initiatives
Chinese blockchain firm Conflux is actively developing an offshore Chinese yuan-backed stablecoin, targeting cross-border payments for countries involved in China’s Belt and Road Initiative (BRI) such as Singapore, Indonesia, Malaysia, and Kazakhstan. This stablecoin, associated with the AnchorX project called AxCNH, has received in-principle regulatory approval from Kazakhstan’s Astana Financial Services Authority, indicating some regional regulatory acceptance beyond China.
Conflux is partnering with AnchorX (a fintech company), Eastcompeace (an IT security vendor), and TokenPocket (a crypto wallet provider) to build infrastructure and promote this stablecoin, including pilot projects in Southeast Asia and Central Asia aimed at facilitating international adoption. This collaboration supports China’s strategic goal of internationalizing the yuan and improving cross-border payment efficiency aligned with BRI economic cooperation.
Technically, Conflux has recently released the third iteration of its public blockchain network, Tree-Graph 3.0. This upgrade is intended to facilitate real-world asset transactions and batch settlements needed for large-scale cross-border payments with improved efficiency and security. The new network boasts a transaction speed of up to 15,000 transactions per second and supports on-chain artificial intelligence automation and broader blockchain interoperability, including full Ethereum Virtual Machine compatibility.
Regarding the regulatory environment in Hong Kong, new stablecoin issuance regulations come into effect on August 1, 2025, providing a formal regulatory framework that could support projects like Conflux’s stablecoin. Hong Kong’s regulatory oversight is seen as crucial for legitimizing and facilitating stablecoin issuance and cross-border financial services associated with the digital yuan efforts from mainland Chinese firms. This regulated environment aligns with China’s broader digital finance movement but also seeks to differentiate China-backed stablecoins from U.S. dollar stablecoins dominating global payments.
In summary:
| Aspect | Details | |-------------------------------|--------------------------------------------------------------------------------------------------------------| | Stablecoin status | Offshore yuan-backed (AxCNH) stablecoin under development | | Partners | AnchorX (fintech), Eastcompeace (IT security), TokenPocket (wallet) | | Target market | BRI countries (e.g., Singapore, Indonesia, Malaysia, Kazakhstan) | | Blockchain technology | Conflux Tree-Graph 3.0, 15,000 TPS, Ethereum compatibility, on-chain AI support | | Regulatory stance | Kazakhstan's Astana Financial Services Authority granted in-principle approval; Hong Kong stablecoin regulations effective Aug 2025 | | Strategic alignment | Yuan internationalization, cross-border payments, digital finance innovation aligned with Belt and Road goals|
This places Conflux at the forefront of Chinese blockchain enterprises advancing yuan-based digital currencies compliant with emerging regulatory regimes in Hong Kong and BRI countries, leveraging upgraded network technology for improved cross-border financial infrastructure.
The Belt and Road Initiative, launched by China in 2013, is a comprehensive infrastructure and investment strategy connecting Asia, Africa, and Europe through transportation and trade projects. This stablecoin initiative aims to enhance global commerce by constructing roads, ports, railways, and digital infrastructure across various continents.
It remains unclear whether the stablecoin tied to Conflux is the same project or an entirely separate initiative, as no confirmation had been issued by the companies involved by the time the report was published. The launch of Conflux 3.0 and the new stablecoin took place during a recent three-day industry conference, covered by the Shanghai municipal government. The regulatory responsibility for stablecoins under LEAP will rest with the Securities and Futures Commission in Hong Kong. The Shanghai branch of the State-owned Assets Supervision and Administration Commission has indicated a potential shift in mainland China’s approach to stablecoins.
In light of Conflux's development of the offshore Chinese yuan-backed stablecoin, AxCNH, the company is partnering with various entities, including AnchorX (a fintech Company), Eastcompeace (an IT security Vendor), and TokenPocket (a Crypto Wallet Provider), to build infrastructure and promote this stablecoin in both Southeast Asia and Central Asia. This collaboration serves China's strategic goal of internationalizing the yuan and improving cross-border payment efficiency, aligning with the Belt and Road Initiative's economic cooperation (business).
The Belt and Road Initiative, launched by China in 2013, seeks to enhance global commerce by constructing infrastructure across various continents, encompassing not only physical transportation and trade projects but also digital infrastructure, such as the offshore Chinese yuan-backed stablecoin by Conflux (technology). The launch of Conflux 3.0 and the subsequent stablecoin came during a recent industry conference, under the regulatory responsibility of the Securities and Futures Commission in Hong Kong, where new stablecoin issuance regulations will come into effect on August 1, 2025 (finance).
