Chinese blockchain developer Conflux launched the third iteration of its public network and announced a stablecoin plan pegged to offshore RMB.
According to a report from the Shanghai municipal government, Conflux revealed these latest updates during a three-day meeting held last weekend. The company stated that it will collaborate with fintech company AnchorX and IT security provider Eastcompeace to bring the RMB-supported stablecoin to market.
Previously, AnchorX obtained principle approval for the RMB-supported currency AxCNH from the Astana Financial Services Authority in Kazakhstan and announced this news. It is unclear whether Conflux's initiative falls under the AxCNH category, and as of the time of publication, Conflux, AnchorX, and Eastcompeace have not commented on this.
Conflux has also reached an agreement with the cryptocurrency wallet company TokenPocket to help promote this RMB-backed stablecoin to a broader user base. TokenPocket stated in a post on X that it will collaborate with AnchorX and Conflux to launch pilot projects in Southeast Asia, Central Asia, and other key regions.
In addition to the stablecoin news, Conflux also released the Conflux 3.0 upgrade. The company mentioned that the new version can process over 15,000 transactions per second and has built-in support for on-chain AI agent calls.
Market response was swift. The native token CFX of Conflux surged from $0.1055 on Sunday to $0.2298 at the time of the reporter's publication, an increase of nearly 127.51%.
Conflux CFX token price. Source: CoinMarketCap
Conflux stated that this RMB-backed stablecoin will target offshore Chinese enterprises and countries participating in China's 'Belt and Road' initiative. As part of its promotional efforts, it will explore asset applications in the real world.
China proposed the 'Belt and Road' initiative in 2013, aimed at enhancing its global influence through massive infrastructure development and trade connections.
The plan aims to connect continents such as Europe, Asia, and Africa through land and maritime corridors, supporting investment and trade via roads, rail networks, digital systems, and ports.
China's second-largest fund launches the world's first RMB tokenized currency fund.
Recent news from the stablecoin sector shows a surge of interest in stablecoins in Hong Kong in recent weeks. Hong Kong has submitted up to 40 stablecoin license applications.
Applicants include large enterprises such as JD.com, Circle, and Ant Group. Their applications were submitted after the Hong Kong government announced a framework called 'LEAP,' which will take effect on August 1 and sets licensing rules for stablecoin issuers.
Under the new system, the Hong Kong Securities and Futures Commission will oversee the licensing of stablecoin providers, and authorities say this move will help promote real-world use cases.
Meanwhile, the Hong Kong branch of China's second-largest fund company, China Asset Management, launched the world's first tokenized currency fund denominated in RMB this Thursday.
"Hua Xia Hong Kong CEO Tian Gan said: 'Our tokenized products are designed to welcome the arrival of stablecoins, whether they are in HKD, RMB, or USD.' He referred to the stablecoin rules that Hong Kong will implement starting August 1.
Gan added that his company aims to be one of the first to provide yield products tailored for stablecoin users.
According to a report by Reuters earlier this month, leading Chinese tech companies have urged the People's Bank of China to allow the launch of stablecoins pegged to offshore RMB in Hong Kong. They believe this initiative could promote the development of Chinese currency globally and counterbalance the growing digital advantages of the US dollar.
