Chinese Conflux Introduces Stablecoin Backed by Offshore Yuan

Date: 2025-07-22 Author: Oliver Abernathy Categories: BUSINESS
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The company Conflux, operating in China, together with AnchorX and Eastcompeace Technology launched its own stablecoin called AxCNH. This digital token is backed by offshore yuan and has a fixed rate of 1:1 in relation to it. The offshore yuan is traditionally used by China for international trade and settlements outside the country.

The creators of AxCNH expect that the new development will expand the scope of application of tokens associated with real assets, as well as facilitate cross-border payments with countries that are part of the One Belt, One Road initiative. Among the key areas are working with companies and counterparties from Malaysia, Singapore and Kazakhstan.

In parallel, Conflux announced plans to modernize its own blockchain platform. Already in August, the network should receive an update that will increase its throughput to 15,000 transactions per second. In addition, the project promises to make the network fully compatible with the Ethereum Virtual Machine, which will allow for more flexible integration of Conflux with other blockchain ecosystems and accelerate the launch of new projects.

Meanwhile, there were reports in the Chinese press that the Chinese authorities are also considering the possibility of creating their own stablecoin, which will be backed by the "onshore" yuan used within mainland China. It is planned that state-owned companies and financial institutions will be engaged in the issue of such assets. There have been no official comments from the government yet, but analysts note that the emergence of a national stablecoin could be an important step towards the digitalization of the yuan and strengthening control over capital movements.

Thus, China is gradually strengthening its position in the global crypto market and is actively developing tools for safer and faster cross-border settlements. For businesses, this could mean simplified transactions with foreign partners and expanded opportunities for issuing tokenized assets.

Observers emphasize that interest in yuan-backed stablecoins will grow amid the ongoing global trend toward the use of digital currencies and the expansion of blockchain infrastructure. Given plans to increase the throughput of the Conflux network and its integration with the Ethereum Virtual Machine, we can expect new products and services to appear more frequently, and cooperation with other blockchains to become even easier and more convenient.

It remains to be seen how quickly such initiatives will receive support at the state level and how actively businesses will begin to use new digital tools for settlements and asset tokenization.
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