Chinese blockchain platform Conflux has announced an upcoming network upgrade and plans to launch a new stablecoin pegged to the offshore yuan. According to the announcement, the project is aimed at facilitating international settlements under China’s Belt and Road initiative.
Backed by Chinese Companies
At a conference in Shanghai, representatives of Conflux shared details of their partnership with fintech firm AnchorX and tech conglomerate Eastcompeace Technology. Together, they plan to issue a stablecoin backed by the offshore yuan for use in countries participating in China’s Belt and Road initiative. These countries include Singapore, Indonesia, Malaysia, and Kazakhstan.
The stablecoin will serve as a means of payment between parties involved in foreign economic projects supported by China, with potential integration into blockchain-based settlement chains.
Conflux 3.0 Network Upgrade
As part of the event, Conflux also announced the upcoming release of its network version 3.0, expected in August. The upgrade aims to boost network throughput to 15,000 transactions per second. Developers describe the platform as a solution for large-scale cross-border payments and real-world asset operations on the blockchain.
Market and Corporate Reactions
Following the announcement, the CFX token surged by 111% in 24 hours, reaching $0.218. Conflux’s market capitalization jumped to $1.11 billion, up 51,86%. Shares of Eastcompeace Technology rose 10% to 20.33 yuan ($2.83) on the Shenzhen Stock Exchange, hitting the daily limit.
Earlier in July, Conflux revealed in a blog post that AnchorX is exploring the issuance of a stablecoin named AxCNH, also pegged to the offshore yuan. Conflux will provide the technical support for the project.
Regulatory Attention and Licensing Rollout in Hong Kong
Interest in offshore yuan stablecoins has increased amid preparations for a new licensing regime for stablecoin issuers in Hong Kong. The new rules will take effect on August 1. Companies like JD.com and Ant Group are reportedly in talks with the People’s Bank of China regarding participation in issuing such financial instruments.
In June, Pan Gongsheng, Governor of China’s central bank, acknowledged that stablecoins and central bank digital currencies are reshaping the global payment infrastructure.
Although mainland China maintains a ban on crypto trading and mining, Hong Kong is promoting a more open approach by introducing licensing for crypto platforms.
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