Against this background, the exchange rate of the CFX native token added more than 18% over the day

Fintech company AnchorX to issue HKD-pegged stablecoin on the Conflux blockchain

21.03.2024 - 14:05

94

3 min

What’s new? Chinese blockchain company Conflux Network together with fintech firm AnchorX is developing a stablecoin AxHKD, backed by the Hong Kong dollar. The asset is scheduled to be launched and listed on exchanges as early as Q2 of this year, but according to Conflux founder and CEO Fan Long, much also depends on the outcome of the regulatory sandbox launched by the Central Bank of Hong Kong last week.

Material by The Block

What else is known? AxHKD on the Conflux blockchain will be backed by “high-quality liquid asset reserves,” with OKLink Trust acting as the issuing partner and custodian.

On February 29, Hong Kong’s financial regulators decided to require issuers of stablecoins linked to fiat currencies to be licensed by the Hong Kong Monetary Authority (HKMA), which serves as the central bank. The HKMA has since announced the launch of a sandbox that will allow the government to “deliver supervisory expectations to industry players.”

Conflux is an open interoperable and scalable Layer 1 (L1) open blockchain, it runs on a hybrid consensus algorithm combining Proof of Work (PoW) and Proof of Stake (PoS), providing high transaction speeds and low fees.

Conflux is the only open blockchain that complies with mainland China’s legal requirements, where crypto transactions and mining are prohibited. The project has partnered with Shanghai authorities and McDonald’s China.

Last February, Conflux began working with China Telecom, China’s second-largest wireless carrier, to develop blockchain-enabled BSIM SIM cards. The cards were released in May, leading to a rise in the CFX native token. The LayerZero protocol team later joined the product development.

Interest in Conflux has increased significantly amid the gradual introduction of crypto regulation in Hong Kong, different from mainland China.

At the time of writing the news, CFX ranks 69th in the overall ranking of cryptocurrencies by market capitalization with a figure of $1,68 billion and is trading at $0,4357, having added 18,6% over the day. The growth since the beginning of the year amounted to 123%.

Hong Kong regulator has developed standards for tokenization and custody of digital assets

Hong Kong regulator has developed standards for tokenization and custody of digital assets

The regulator has also introduced requirements for institutions to manage conflicts of interest when dealing with digital assets

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Back in July last year, representatives of Hong Kong’s crypto community suggested that the authorities issue their own HKDG stablecoin, which would be backed by the jurisdiction’s foreign exchange reserves and could compete with USDT and USDC, pegged to the US dollar.

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