Toronto, Canada, March 8th, 2024: Conflux Network Assists Beta-Testing of HKD-Backed Stablecoin AxHKD
Conflux Network, the only regulatory compliant public blockchain in China, has played a pivotal role in the successful beta-testing of AxHKD, a Hong Kong Dollar (HKD)-backed stablecoin. Developed by AnchorX, a local fintech company, the stablecoin will initially be launched on Conflux Network before being introduced on Ethereum.
Conflux Network provides the underlying technology for AxHKD, offering superior scalability, security, low latency, and cost-effectiveness. This launch positions AnchorX as a trusted provider of digital currency solutions in Asia, facilitating reliable and efficient global exchanges.
AxHKD: A Secure and Trustworthy Stablecoin
- AxHKD will be launched on the Conflux public blockchain and utilizes top-tier distributed ledger technology and robust cybersecurity measures.
- The stablecoin ensures a 1:1 peg to the HKD and is backed by high-quality liquid asset reserves.
- These reserves are protected by a segregated trust arrangement and held by regulated financial institutions in Hong Kong.
- OKLink Trust, a strategic partner of AnchorX, provides custodian services for the issuance of AxHKD.
Applications of AxHKD
- Catalyst for Global Payments: AxHKD enhances cross-border transactions between Hong Kong/mainland China and the global market. This is particularly beneficial for Belt and Road partners with less developed banking infrastructures.
- Fiat-on-Chain Instrument: AxHKD acts as a reliable fiat-on-chain instrument for virtual asset trading. It paves the way for innovation in Real-World Assets and bridges the gap between traditional and digital assets in Hong Kong.
The project has received backing from industry leaders in both traditional finance and blockchain technology, including Hony Capital, a leading investment management firm in China with over USD 16 billion in assets.
This announcement follows recent initiatives by Hong Kong authorities to propose a regulatory regime for stablecoin issuers. The Financial Services and the Treasury Bureau, along with the Hong Kong Monetary Authority (HKMA), released a Consultation Paper on December 27, 2023, to gather public comments on the proposed legislation. AnchorX is committed to meeting regulatory standards and aligning AxHKD with the proposed stablecoin standards. The company also aims to participate in the upcoming regulatory sandbox to contribute practical insights to the formation of a successful stablecoin regulatory regime.
Fan Long, Founder of Conflux, expressed excitement about partnering with AnchorX for the launch of AxHKD on Conflux Network. He believes this collaboration represents a significant milestone in integrating traditional finance with the Web3 realm, making digital currencies more practical for everyday transactions. AxHKD is expected to play a crucial role in incorporating the Hong Kong Dollar into 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. It utilizes a hybrid PoW/PoS consensus mechanism to ensure a rapid, secure, and scalable blockchain environment. With Conflux, congestion is eliminated, fees remain low, and network security is enhanced.
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.
About AnchorX
AnchorX is a Hong Kong-based fintech company with a vision to be the most trusted provider of digital solutions in Asia.
Contact
Melissa Tirey
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Hot Take: Conflux Network Enables Beta-Testing of HKD-Backed Stablecoin AxHKD
Conflux Network’s partnership with AnchorX has played a crucial role in successfully beta-testing AxHKD, a stablecoin backed by the Hong Kong Dollar (HKD). This collaboration signifies the fusion of traditional finance with the Web3 realm, making digital currencies more practical for everyday transactions. AxHKD is expected to drive innovation and financial inclusion by bridging the gap between traditional and digital assets in Hong Kong.
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