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 chief compliance officer at AnchorX, said,
“Hong Kong has adopted one of the most proactive approaches to stablecoin regulation globally. We want to ensure that AxHKD tightly aligns with the proposed stablecoin standards.
“We will also explore applying for participation in the upcoming regulatory sandbox and hope to contribute our first-hand practical insights to the formation of a successful stablecoin regulatory regime.”
Fan Long, founder of Conflux, said,
“We’re thrilled to partner with AnchorX for the launch of AxHKD on Conflux Network.
“This collaboration represents a significant milestone in the fusion of traditional finance and the Web 3.0 realm, enhancing the practicality of digital currencies for everyday transactions.
“AxHKD is poised to play a pivotal role in weaving the Hong Kong Dollar into the fabric of the Web 3.0 ecosystem, driving innovation and financial inclusion.”
About Conflux
Conflux Network is a permissionless layer-one blockchain that connects decentralized economies across borders and protocols.
It utilizes a hybrid PoW/PoS (proof-of-work/proof-of-stake) consensus mechanism to ensure a rapid, secure and scalable blockchain environment.
With Conflux, congestion is eliminated, fees remain low and network security is enhanced.
As the leading regulatory-compliant public blockchain in China, Conflux offers a distinct advantage for projects seeking to enter the Asian market.
The platform collaborates with renowned global brands and government entities in the region, driving 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 at the website.
About AnchorX
AnchorX is a Hong Kong-based fintech company with a vision to be the most trusted provider of digital solutions in Asia.
Learn more at the website or on X.
Contact
Melissa Tirey, Shift6 Studios
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