- Conflux’s collaboration with AnchorX to launch a Hong Kong dollar-backed stablecoin, AxHKD, in the second quarter of the year.
- This indicates a growing interest in stablecoin adoption within the Hong Kong market, especially with the establishment of a regulatory sandbox by the Hong Kong Monetary Authority (HKMA) to supervise stablecoin issuers
Conflux Network, a prominent Layer 1 blockchain project originating from China, is teaming up with fintech company AnchorX to introduce a stablecoin pegged to the Hong Kong dollar, slated for launch in the second quarter of this year.
Fan Long, the founder and CEO of Conflux, revealed in an interview that AnchorX is actively working towards the launch of its stablecoin, AxHKD, aiming for a speedy deployment. The potential timeline for availability on exchanges could be as early as Q2, contingent upon the pace of regulatory approvals within the regulatory sandbox framework.
Earlier this month, Conflux and AnchorX disclosed their joint venture for the beta-testing phase of AxHKD, which is meticulously crafted to maintain a 1:1 peg with the Hong Kong dollar, backed by reserves of high-quality liquid assets. OKLink Trust is set to serve as the custodian for stablecoin issuance on the Conflux public blockchain.
This initiative coincides with the recent establishment of a regulatory sandbox by the Hong Kong Monetary Authority (HKMA) for stablecoin issuers. The regulatory sandbox aims to provide a conducive environment for industry players to adhere to supervisory standards, following the government’s consultation on regulating stablecoin issuers.
While questions have been raised regarding market demand for an HKD-pegged stablecoin, Vincent Chok, CEO of First Digital, remains optimistic, citing substantial demand and ample room for growth in the market. Similarly, Fan Long believes that Hong Kong’s crypto-friendly environment and governmental support further bolster the prospects for stablecoins denominated in HKD.
As the crypto trading landscape evolves, with Hong Kong emerging as a pivotal hub, Conflux and AnchorX’s collaborative effort underscores a significant step towards providing a stablecoin solution tailored to the specific needs of the Hong Kong market.
Pioneering Scalability and Regulatory Compliance in Blockchain
In the ever-evolving landscape of blockchain technology, Conflux has emerged as a promising layer-1 blockchain network, aiming to tackle scalability and security challenges often encountered by its predecessors. Utilizing a hybrid consensus mechanism that blends proof-of-work (PoW) and proof-of-stake (PoS), Conflux ensures both network security and efficiency.
This innovative approach allows for up to 4,000 transactions per second (TPS) through its TreeGraph structure, facilitating parallel block processing. Moreover, Conflux’s commitment to regulatory compliance has positioned it strategically in the Chinese market, fostering collaborations with local enterprises and institutions.
Bolstered by a vibrant ecosystem and key partnerships with industry giants like China Telecom and Huobi Global, Conflux is poised to make significant strides in the decentralized space. With its scalability, security, and regulatory adherence, Conflux holds the promise of reshaping the future of blockchain technology and driving the expansion of the digital economy.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
