Conflux Network launches Hong Kong dollar-backed stablecoin

Conflux Network, a public blockchain in China, has announced testing of the AxHKD stablecoin, backed by the Hong Kong dollar.

According to a March 8 post by Conflux on X, developers have successfully launched beta-testing of the AxHKD stablecoin.

AxHKD, developed by local fintech company AnchorX, will soon be launched on the Conflux network and then on Ethereum.

“AxHKD on Conflux guarantees a secure 1:1 peg to the HKD with high-quality reserves and regulated custodianship by OKLink Trust.”

Conflux Network team

As the project team explains, AxHKD serves two vital roles in the financial industry: accelerating global payments through seamless cross-border transactions between Hong Kong and China and the world. The stablecoin also opens up new opportunities for virtual asset trading with AxHKD as a reliable blockchain solution.

Earlier in January, Conflux announced the release of an Ethereum Virtual Machine (EVM) compatible layer 2 solution based on the Bitcoin network. According to the developers, EVM compatibility means that smart contracts can be deployed on the network.

The developers also noted the possibility of using the proof-of-stake (PoS) protocol. The release of the testnet is scheduled for the first quarter of 2024, and the mainnet is expected in May.

Conflux is developed by a team with open support from the Chinese government, where the project’s infrastructure is being implemented in the largest technology companies. Conflux Network is registered in Singapore, but its investors and critical employees belong to the Chinese tech elite or have roots in mainland China.