Hong Kong-based FinTech company AnchorX has made a groundbreaking move by launching the HKD-backed stablecoin, AxHKD, on Conflux Network. This collaboration between AnchorX and Conflux Network, the only regulatory-compliant public blockchain in China, marks a significant step towards enhancing the practicality of digital currencies for everyday transactions.
Conflux Network, known for its role in bridging decentralized economies and protocols, has previously partnered with global brands and government entities on blockchain initiatives. The partnership with AnchorX highlights Conflux Network’s commitment to providing cutting-edge technology solutions, empowering AnchorX to launch AxHKD with robust distributed ledger technology and cybersecurity measures.
Fan Long, Founder of Conflux, expressed excitement about the collaboration, stating, “This partnership represents a significant milestone in the fusion of traditional finance and the Web3 realm, enhancing the practicality of digital currencies for everyday transactions.”
AxHKD, designed to maintain a 1:1 peg to the HKD, is backed by high-quality liquid asset reserves held in segregated trust arrangements by regulated financial institutions in Hong Kong. The stablecoin is set to play a pivotal role in global payments and virtual asset trading, driving innovation and financial inclusion.
Byron Wong, Chief Compliance Officer at AnchorX, emphasized the importance of regulatory alignment, 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.”
The announcement comes amidst Hong Kong authorities’ initiatives to propose a regulatory regime for stablecoin issuers, highlighting the growing recognition of stablecoins as a vital component of the financial ecosystem. This collaboration between AnchorX and Conflux Network sets a new standard for the integration of digital currencies into everyday transactions, paving the way for further innovation in the fintech industry.
