Conflux to Launch Yuan-Backed Stablecoin

Conflux Unveils Major Network Upgrade and Stablecoin Plans

Chinese blockchain developer Conflux has launched the third version of its public network, marking a significant milestone in its development journey. Alongside this update, the company announced plans to introduce a stablecoin backed by the offshore Chinese yuan, signaling its growing influence in the global financial landscape.

The announcement was made during a three-day conference that took place over the weekend. Conflux revealed that it is collaborating with fintech firm AnchorX and IT security vendor Eastcompeace to bring the offshore yuan-backed stablecoin to market. This partnership aims to leverage the strengths of each company in creating a secure and reliable digital asset.

AnchorX recently secured in-principle approval for the yuan-backed coin, AxCNH, from Kazakhstan’s Astana Financial Services Authority. However, it remains unclear if Conflux's initiative aligns with AxCNH. At this time, neither Conflux, AnchorX, nor Eastcompeace have provided official comments on the matter.

In addition to the stablecoin collaboration, Conflux has partnered with crypto wallet provider TokenPocket to expand the reach of the yuan-backed stablecoin. TokenPocket announced on X that it will conduct pilot projects in Southeast Asia and Central Asia, as well as other priority regions, in collaboration with AnchorX and Conflux. This strategic move is expected to increase adoption and awareness of the new stablecoin among users.

Conflux 3.0: Enhanced Performance and AI Integration

Alongside the stablecoin news, Conflux introduced its Conflux 3.0 upgrade. The latest version boasts impressive capabilities, including the ability to process over 15,000 transactions per second. Additionally, it features built-in support for on-chain AI agent calls, enhancing the functionality and efficiency of the network.

The market responded positively to these developments. Conflux's native token, CFX, experienced a remarkable surge in value. From a price of $0.1055 at the start of the weekend, the token rose to $0.2298 by press time, reflecting an increase of nearly 127.51 percent.

Conflux emphasized that the yuan-backed stablecoin is specifically targeted at offshore Chinese businesses and countries participating in China’s Belt and Road Initiative. The project also aims to explore real-world applications as part of its rollout strategy.

Expanding Global Influence Through the Belt and Road Initiative

Launched in 2013, China's Belt and Road Initiative seeks to enhance the country's global influence through large-scale infrastructure and trade links. By connecting continents such as Europe, Asia, and Africa via land and sea corridors, the initiative supports investment and trade through roads, rail networks, digital systems, and ports.

This expansion aligns with Conflux's vision to provide innovative financial solutions that cater to the needs of international markets. The introduction of the yuan-backed stablecoin could serve as a valuable tool for facilitating cross-border transactions and fostering economic cooperation.

Hong Kong's Growing Interest in Stablecoins

In related developments, Hong Kong has witnessed a surge in interest within the stablecoin sector. Over 40 applications for stablecoin licenses have been submitted in the city, with major firms such as JD.com, Circle, and Ant Group among the applicants. These submissions follow the launch of Hong Kong's "LEAP" framework, which becomes effective on August 1 and outlines licensing rules for stablecoin issuers.

Under the new regime, Hong Kong's Securities and Futures Commission will oversee the granting of licenses to stablecoin providers. Authorities believe this move will encourage the development of real-world use cases for stablecoins.

Additionally, China Asset Management’s Hong Kong unit, the country’s second-largest fund, launched the world's first renminbi-denominated tokenized money fund on Thursday. The CEO of ChinaAMC Hong Kong, Tian Gan, stated that their tokenized products are designed to welcome the arrival of stablecoins, including those denominated in Hong Kong dollars, renminbi, or U.S. dollars.

Gan highlighted the firm's goal to be among the first to offer yield-bearing products tailored for stablecoin users. This initiative reflects the growing demand for stablecoin-related services in Hong Kong.

Tech Companies Advocate for Offshore Yuan Stablecoins

According to a recent Reuters report, China's leading tech companies have urged the national bank to allow stablecoins tied to the offshore yuan to launch in Hong Kong. They argue that this step could enhance the global standing of the Chinese currency and provide a counterbalance to the increasing dominance of the U.S. dollar in the digital space.

As the blockchain and stablecoin landscape continues to evolve, Conflux's initiatives highlight the potential for innovation and growth in the financial sector. With its network upgrades and stablecoin plans, the company is positioning itself as a key player in the global digital economy.