Launch of a Stablecoin by Conflux to Enhance Payment Transactions within the Belt and Road Initiative
In a significant move, the Shanghai branch of the State-owned Assets Supervision and Administration Commission has convened a meeting to assess strategic actions concerning digital currencies. This potential shift in China's approach to stablecoins could mark a new era for the country's digital economy.
One of the key outcomes from this meeting is the advocacy for increased attentiveness to technological innovation and deeper research into the evolving landscape of digital assets. This push for progress is evident in the recent launch of Conflux 3.0, a public network capable of processing over 15,000 transactions per second.
Conflux, a Chinese blockchain firm, has unveiled a new stablecoin pegged to the offshore Chinese yuan as part of its broader objective to support cross-border payments within the scope of China's Belt and Road Initiative (BRI). The specific name of the stablecoin was not confirmed in the report, but it is expected to be used by Chinese enterprises operating offshore and nations aligned with China's BRI framework.
The stablecoin project, which is currently active and progressing, is a collaboration between Conflux, fintech company AnchorX, and security technology provider Eastcompeace. This partnership leverages AnchorX’s fintech expertise, Eastcompeace's information security capabilities, and Conflux’s blockchain infrastructure to provide a secure, efficient digital currency for cross-border trade and payments.
The stablecoin is designed to reduce transaction costs, enhance liquidity, and improve financial inclusion in key regions such as Central Asia, Southeast Asia, and BRI-participating countries, including Singapore, Indonesia, and Malaysia. Pilot projects have been planned or launched in these regions, supported by integration into crypto wallets like TokenPocket to ensure ease of access and adoption.
The event where Conflux launched Conflux 3.0 and announced its partnerships was reportedly covered by the Shanghai municipal government. The market response to this development has been strong, with Conflux’s native token CFX more than doubling in price, reflecting investor optimism about the stablecoin and network upgrade’s prospects.
Meanwhile, around 40 companies, including JD.com, Ant Group, and Circle, have applied for stablecoin licenses in Hong Kong in response to its new digital asset policy known as LEAP. The regulatory responsibility for stablecoin issuers in Hong Kong, under LEAP, will rest with the Securities and Futures Commission, aiming to foster real-world blockchain use cases through structured compliance.
However, it remains unclear whether the stablecoin tied to Conflux is the same project or an entirely separate initiative as AnchorX's AxCNH, which recently received regulatory approval from Kazakhstan's Astana Financial Services Authority. The collaboration between Conflux, AnchorX, and Eastcompeace for developing and rolling out an offshore Chinese yuan-backed stablecoin is a significant step forward in China's evolving blockchain policy environment, advancing both technological innovation and international utility aligned with national economic strategies.
The Belt and Road Initiative, launched by China in 2013, is a comprehensive infrastructure and investment strategy aimed at connecting Asia, Africa, and Europe through transportation and trade projects. This initiative seeks to enhance global commerce by constructing roads, ports, railways, and digital infrastructure across various continents. The stablecoin project, if successful, could greatly facilitate cross-border payments within these trade corridors.
[1] Conflux Official Announcement: https://www.conflux-network.org/blog/conflux-3-0-is-live/ [2] AnchorX Official Announcement: https://medium.com/anchorex/axcnh-receives-in-principle-regulatory-approval-from-afsa-in-kazakhstan-9f064b61724a [3] TokenPocket Official Announcement: https://www.tokenpocket.pro/en/announcement/2025-07-15-tokenpocket-partners-with-conflux-and-anchorx/ [4] Market Response: https://www.coindesk.com/markets/2025/07/16/conflux-token-more-than-doubles-in-price-following-network-upgrade-and-stablecoin-announcement/ [5] Financial Inclusion: https://www.conflux-network.org/blog/conflux-partners-with-anchorx-to-enhance-financial-inclusion-with-the-axchn-stablecoin/
- The strategic moves discussed in the meeting, which advocated for increased focus on technological innovation and research into digital assets, could also prompt further interest in the finance sector, particularly in the realm of technology-driven finance products like stablecoins.
- In the same vein as Conflux's collaboration with AnchorX and Eastcompeace to develop an offshore Chinese yuan-backed stablecoin, regulatory bodies like the Securities and Futures Commission in Hong Kong are also taking steps to foster blockchain use cases through structured compliance, indicating a growing appreciation for the potential of fintech and technology in the general-news landscape.
