Hong Kong To Welcome Its First Ever Dollar-Backed Stablecoin (AxHKD)

The post Hong Kong To Welcome Its First Ever Dollar-Backed Stablecoin (AxHKD) appeared first on Coinpedia Fintech News

As the hype of the crypto market is buzzing with the news of Bitcoin hitting back its all-time high price after two straight years. Many nations are gearing up for the digital asset era.

In this wave, Conflux Network, China’s compliant, public, and permissionless blockchain, is teaming up with AnchorX and OKLink Trust to introduce the first Hong Kong dollar-backed stablecoin, AxHKD.

Collaboration for AxHKD Stablecoin

In a strategic collaboration, AnchorX, a fintech company based in Hong Kong, has partnered with Conflux Network for scalability and security, and OKLink Trust for custody services to launch AxHKD. 

This stablecoin will be initially launched on Conflux Network, followed by the Ethereum blockchain.

However, AxHKD is designed to maintain a stable 1:1 peg to the Hong Kong dollar. The stability is reinforced by high-quality liquid assets, secured through a separate trust arrangement held by regulated financial institutions, including the reputable private equity firm Hony Capital with 13 billion AUM.

AnchorX’s Vision for axHKD 

AnchorX proposes two primary applications for axHKD. Firstly, it aims to facilitate smooth global cross-border transactions. Secondly, it plans to create a fiat-on-chain system for virtual asset trading. 

This strategic move positions AxHKD as a bridge between traditional and digital assets in Hong Kong.

Regulatory Landscape in Hong Kong

The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have demonstrated openness to regulate virtual assets. The authorities are also exploring a regulatory regime for stablecoin issuance, creating a favorable environment for innovative projects like AxHKD.

In the meantime, AnchorX, aligned with the regulatory dynamics, expresses its intent to participate in the forthcoming regulatory sandbox. This strategic move underscores the commitment to contributing to the development of a robust and sound stablecoin regulatory regime.

Conflux (CFX) Price Movement

Amid these groundbreaking announcements, Conflux (CFX) has experienced a notable surge of 5% in the last 24 hours and an impressive 25% increase over the week. 

The trading volume has also witnessed a substantial rise, surging by over 60% in the last 24 hours, underscores the growing market activity and heightened interest in Conflux Network’s innovative initiatives.