Skip to content

Conflux Launches AxHKD – Hong Kong's First HKD-Backed Stablecoin

AxHKD, Hong Kong's first HKD-backed stablecoin, will be launched on Conflux and eventually Ethereum

Table of Contents

A new stablecoin backed by the Hong Kong dollar is set to be launched on the Conflux network.

AxHKD is developed by Hong Kong fintech company AnchorX. The stablecoin will eventually be launched on Ethereum too.

Its 1:1 peg to the HKD is backed by high-quality liquid asset reserves, which are protected by regulated institutions in Hong Kong. OKLink Trust provides the custodian services for the AxHKD issuance.

AnchorX will integrate the onchain AML solutions created by OKLink Fintech to strengthen its AML capabilities regarding virtual assets.

“This collaboration represents a significant milestone in the fusion of traditional finance and the Web3 realm, enhancing the practicality of digital currencies for everyday transactions,” said Conflux founder Fan Long.

Conflux explained that AxHKD aims to expedite international payments with smooth cross-border transactions linking Hong Kong and China to the global market, and facilitate virtual asset trading by offering AxHKD as a dependable blockchain solution.

Conflux is a Chinese blockchain, registered in Singapore, that is allowed to operate in China despite the country's crypto ban. It partnered with China Telecom to develop blockchain-integrated SIM cards in Hong Kong. Conflux is currently being used by Chinese social media platform Little Red Book, which features NFTs.

Conflux was also used to build CNHC – a Chinese yuan-backed stablecoin backed by Circle and KuCoin.

Chinese Yuan-Pegged Stablecoin Backed By KuCoin, Circle
Over 99% of existing stablecoins are backed by USD but Circle and KuCoin are betting on Chinese Yuan-pegged stablecoin

Last week, the Hong Kong Monetary Authority (HKMA) announced a new wholesale central bank digital currency (wCBDC) project with a focus on tokenization.

Project Ensemble seeks to " explore innovative financial market infrastructure (FMI) that will facilitate seamless interbank settlement of tokenized money through wCBDC."

"The project will initially focus on tokenized deposits, which is a digital representation of commercial bank deposits, issued by commercial banks and made available to the general public," HKMA explained.

Hong Kong Announces New Wholesale CBDC Project to Support Tokenization
The Hong Kong Monetary Authority (HKMA) has unveiled Project Ensemble - a wCBDC project focusing on tokenization

wCBDCs provide infrastructure for RWAs as digital tokens on blockchain networks. Leveraging wCBDCs for tokenization enables enhanced liquidity, transparency, and accessibility of assets. This allows for fractional ownership, faster settlement, and increased market efficiency.