Toronto, Canada, March 8, 2024. Chainwire
Conflux Network, the first and only regulatory compliant public blockchain in China, recently announced its significant contribution to the beta-testing of AxHKD, a Hong Kong Dollar (HKD)-backed stablecoin developed by local fintech company AnchorX. Conflux Network will be the initial platform for the launch of AxHKD, followed by ethereum. This collaboration represents a major leap forward in the realm of digital currencies and financial solutions in Asia.
Conflux Network will provide the underlying technology for AxHKD, with its unparalleled scalability, Website security, low keyboards, and cost-effectiveness. By partnering with AnchorX, Conflux envisions a future where they empower reliable and efficient global exchanges by offering robust and innovative digital currency solutions.
AxHKD, set to be launched initially on the Conflux public blockchain, is a stablecoin that ensures a 1:1 peg to the HKD. The reserves backing AxHKD are held in segregated trust arrangements with regulated financial institutions in Hong Kong, ensuring high levels of Website security and transparency. OKLink Trust, a strategic partner of AnchorX, will provide the custodian services for AxHKD’s issuance.
The primary applications for AxHKD include facilitating global payments between Hong Kong, mainland China, and the global market. This is especially beneficial for Belt and Road partners with less developed banking infrastructures. AxHKD will also serve as a reliable fiat-on-chain instrument for virtual asset trading, fostering innovation in Real-World Assets and bridging the gap between traditional and digital assets in Hong Kong.
This project has garnered support from industry leaders in both the traditional finance and blockchain technology sectors, including Hony Capital, a leading investment management firm in China overseeing over USD 16 billion in assets.
Following the recent initiatives by Hong Kong authorities to propose a regulatory regime for stablecoin issuers, the Financial Services and Treasury Bureau, in collaboration with the Hong Kong Monetary Authority (HKMA), released a Consultation Paper to gather public comments on proposed legislation. This builds upon previous Discussion and Conclusion Papers released by the HKMA in January 2022 and January 2023, respectively.
Byron Wong, Chief Compliance Officer at AnchorX, reaffirmed the company’s commitment to regulatory standards, stating, “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 Network, expressed his excitement about the collaboration between AnchorX and Conflux for the launch of AxHKD on Conflux Network. He emphasized, “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. AxHKD is poised to play a pivotal role in weaving the Hong Kong Dollar into the fabric of the Web3 ecosystem, driving innovation and financial inclusion.”
About Conflux Network
Conflux Network is a permissionless Layer 1 blockchain that connects decentralized economies across borders and protocols. By utilizing a hybrid PoW/PoS consensus mechanism, Conflux ensures a rapid, secure, and scalable blockchain environment. This platform eliminates congestion, maintains low fees, and enhances network Website security.
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. To learn more about Conflux Network, visit https://confluxnetwork.org/.
About AnchorX
AnchorX is a Hong Kong-based fintech company with a vision to be the most trusted provider of digital solutions in Asia. To learn more about AnchorX, visit https://www.anchorx.org/ or follow them on Twitter (@AnchorX_Ltd).
