Catenaa, Saturday, July 26, 2025- Conflux Network, a China-based Layer 1 blockchain, plans to issue a stablecoin pegged to the offshore yuan and launch a major upgrade in August, as the country moves cautiously into the global stablecoin race.
The company said over the weekend it will collaborate with fintech firm AnchorX and Shenzhen-listed Eastcompeace Technology to develop yuan-based stablecoins, with a focus on serving Belt and Road Initiative (BRI) countries.
The BRI is China’s sweeping global infrastructure strategy involving more than 140 nations.
The proposed stablecoin, called AxCNH, will be pegged to the offshore Chinese yuan and designed for cross-border trade and payment settlements.
The move comes as stablecoins and central bank digital currencies (CBDCs) gain traction globally, a shift recognized last month by People’s Bank of China.
Conflux also announced Conflux 3.0, an upgraded blockchain expected to go live in August, boasting processing speeds of up to 15,000 transactions per second.
The enhanced capabilities are aimed at enabling high-volume settlement of real-world assets and international payments.
Following the announcements, Conflux’s native token CFX surged 57% to $0.22, lifting its market cap to $1.1 billion. Meanwhile, Eastcompeace Technology’s stock hit the Shenzhen exchange’s 10% daily limit, closing at 20.33 yuan ($2.83).
The news comes just ahead of Hong Kong’s new licensing regime for stablecoin issuers, set to begin August 1, prompting Chinese tech giants like JD.com and Ant Group to push for regulatory approval of yuan-based digital currencies.
