Chinese blockchain Conflux launching offshore yuan-backed stablecoin

Chinese blockchain platform Conflux announced this weekend the debut of its third public network iteration, Conflux 3.0, alongside the unveiling of a new stablecoin designed to be backed by offshore Chinese yuan.

These announcements emanated during the recent Fudan University Digital Asset Technology and Applications Conference held in Shanghai. Conflux revealed a strategic partnership with fintech venture AnchorX and cybersecurity firm Eastcompeace. The collaboration is aimed at facilitating the launch of the yuan-pegged stablecoin.

The timing places Conflux’s stablecoin development amidst news that AnchorX secured an in-principle approval for its yuan-pegged stablecoin, designated as AxCNH, by the Astana Financial Services Authority (AFSA) of Kazakhstan. It remains unclear if Conflux’s offering is distinct from AxCNH or represents a joint project; representatives from Conflux, AnchorX, and Eastcompeace declined comment to Cointelegraph pending publication.

Furthermore, Conflux integrated its alliance with crypto wallet provider TokenPocket, enabling its user base to access its new stablecoin asset. TokenPocket announced intent to collaborate with Conflux and AnchorX on pilot projects targeting Central Asia and Southeast Asia.

Simultaneously, Conflux introduced its Conflux 3.0 network. According to the company, the upgrade boasts a capacity for handling over 15,000 transactions per second and incorporates the capability for native on-chain artificial intelligence agent interactions.

The Currency Stability and Belt <strong>Road</em></strong>

In a separate development, Conflux outlined the potential applications of the new stablecoin, signaling a focus on serving entities based overseas, particularly countries within the China-led Belt and Road Initiative (BRI). The BRI, launched in 2013, is a global infrastructure strategy aimed at enhancing connectivity across Asia, Africa, and Europe, thereby boosting international trade and investment. The initiative also encompasses the development of digital infrastructure.

An Intensifying Stablecoin Landscape in China

Conflux’s stablecoin initiative positions it as the latest participant in a burgeoning Chinese stablecoin sector. Cointelegraph noted that Hong Kong has become a focal point for stablecoin innovation, attracting a high volume of license applications following the introduction of a regulatory framework.

Earlier this month, Hong Kong authorities attracted 40 applications for stablecoin licenses. Major corporations such as JD.com, Ant Group, and Circle were among the applicants. This surge came after Hong Kong introduced “LEAP,” a regulatory framework mandating stablecoin licensing beginning August 1st. Hong Kong’s Securities and Futures Commission will administer this process.

Tellingly, Beijing’s mainland stance on cryptocurrencies remains one of strict regulation. However, preliminary signals suggest a potential adjustment regarding stablecoins. A March meeting convened by Shanghai’s State-owned Assets Supervision and Administration Commission (SASAC) explored strategic responses to stablecoins. Post-meeting, Director He Qing advocated for “greater sensitivity to emerging technologies” and “enhanced research into digital currencies.”