Conflux Network partners with AnchorX to launch Hong Kong dollar stablecoin AxHKD! Striving to go online in Q2

According to a report by "The Block", Conflux Network, China's only public chain that meets regulatory requirements, is cooperating with Hong Kong financial technology company AnchorX and plans to launch a Hong Kong dollar stablecoin in the second quarter of this year." AxHKD". This cooperation is intended to bring more stability and transparency to the digital currency market and provide more choices and opportunities for crypto assets.

Conflux founder and CEO Long Fan revealed in an interview with "The Block" that the AnchorX team is paying close attention to the launch of a stable currency called "AxHKD". He said that if all goes well, Hong Kong residents may obtain the stablecoin through exchanges as early as the second quarter of this year, but the specific time still depends on the progress of the regulatory sandbox plan.

Conflux and AnchorX began beta testing AxHKD in early March. According to reports, this stablecoin is built by AnchorX, ensuring a 1:1 peg to the Hong Kong dollar and being backed by high-quality liquid asset reserves. The reserves are protected by independent trust arrangements and held by regulated financial institutions in Hong Kong. The strategy Partner OKLink Trust provides custody services for the issuance of AxHKD.

Last week, the Hong Kong Monetary Authority (HKMA) announced the launch of a regulatory sandbox program specifically designed for "stablecoin issuers", aiming to allow relevant institutions to operate in a controlled environment through sandbox experiments. Test stablecoin issuance processes, business models, investor protection and risk management systems, and communications related to future regulatory requirements. This initiative aims to promote fintech innovation and bring more transparency and sustainability to financial markets. This regulatory sandbox program will provide participating institutions with a place to experiment and make adjustments in a controlled environment in preparation for a formal market launch at a later date. This move will also

As the “USD stablecoin” currently dominates the cryptocurrency field, some industry experts have questioned the market potential of the “Hong Kong dollar stablecoin”.

HexTrust CEO Alessio Quaglini believes that he does not think it is necessary to use Hong Kong dollar stablecoins. He said that even if Hong Kong dollar stablecoins appear on the market, they are unlikely to be large in number.

Alessio Quaglini further stated that he was happy to participate in discussions, conduct proof-of-concepts and experiments. While the launch of a stablecoin pegged to the Hong Kong dollar is a good thing, in terms of business opportunities, he believes the opportunities are quite limited.

However, Vincent Chok, CEO of First Digital, the issuer of the FDUSD stablecoin, expressed optimism about market demand. He said: "The demand feedback we have observed is very positive. Although the market is small, it has huge growth potential, and I believe there will be more new stablecoins coming out soon."

Vincent Chok revealed , as far as he knows, many companies are currently queuing up to apply for a Hong Kong stable currency license, and First Digital is also one of them, planning to issue a stable currency denominated in Hong Kong dollars later this year.

Long Fan, founder and CEO of Conflux, also pointed out that "there is definitely a market demand for Hong Kong dollar stablecoins." Due to China's long-term ban on cryptocurrency trading, it is expected that "Hong Kong will become a magnet, attracting various unmet needs." transaction needs", and the Hong Kong government's support for the cryptocurrency industry also "provides additional protection for the future of Hong Kong dollar stablecoins."

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