Conflux Network the only regulatory compliant public blockchain in China today announces its pivotal role in assisting the successful beta testing of the HKD (Hong Kong Dollar)-backed stablecoin, AxHKD.
Built by local fintech company AnchorX, the stablecoin will be launched on Conflux Network initially, followed by Ethereum.
Conflux will provide the underlying technology with its superior scalability, security, low latency and cost-effectiveness.
With this launch, AnchorX envisions becoming the most trusted provider of digital currency solutions in Asia, empowering reliable and efficient global exchanges.
AxHKD, will be launched initially on the Conflux public blockchain, and utilizes world-class distributed ledger technology and robust cybersecurity measures.
It ensures a one-to-one peg to the HKD, backed by high-quality liquid asset reserves.
These reserves are protected by a segregated trust arrangement and held by regulated financial institutions in Hong Kong.
OKLink Trust, a strategic partner of AnchorX, provides the custodian services for the AxHKD issuance.
AnchorX targets two primary applications for AxHKD.
Firstly, as a catalyst for global payments, AxHKD enhances cross-border transactions between Hong Kong/mainland China and the global market.
This is particularly beneficial for Belt and Road partners with less developed banking infrastructures.
Secondly, AxHKD acts as a reliable fiat-on-chain instrument for virtual asset trading, paving the way for innovation in RWAs (real-world assets) and bridging the gap between traditional and digital assets in Hong Kong.
The project is backed by Industry leaders from both the traditional finance and blockchain technology space including Hony Capital, a leading investment management firm in China overseeing over $16 billion in assets.
The announcement follows the recent initiatives by Hong Kong authorities to propose a regulatory regime for stablecoin issuers.
On December 27, 2023, the Financial Services and the Treasury Bureau, in conjunction with the HKMA (Hong Kong Monetary Authority), released a ‘consultation paper’ to gather public comments on the proposed legislation to regulate stablecoin issuers.
This paper builds on the ‘discussion paper’ released by the HKMA in January 2022 and the subsequent ‘conclusion paper’ in January 2023.
Commenting on the company’s unwavering commitment to meeting regulatory stands, Byron Wong, the…
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