The first regulated stablecoin linked to the international version of the Chinese yuan (CNH) aimed at foreign exchange markets, and a stablecoin in South Korean won (KRW) were launched this week as the global race for stablecoins intensifies.
The fintech company AnchorX introduced its stablecoin linked to the yuan, AxCNH, on Wednesday at the Belt and Road Summit in Hong Kong, according to Reuters, following a regulatory twist in China that adopts stablecoins for international markets.
The stablecoin is intended to facilitate cross-border transactions with countries involved in the Belt and Road initiative, an infrastructure project that builds physical roads connecting China with the Middle East and Europe, and establishes maritime trade routes with other regions.
BDACS, a digital asset infrastructure company, also announced the launch of KRW1, a stablecoin linked to the Korean won on Thursday.
Both KRW1 and AxCHN are over-collateralized stablecoins, meaning they are fully backed 1:1 by deposits in fiat currency or government debt instruments held by a custodian.
Stablecoins are now a sector of geostrategic importance, as sovereign governments rush to place their fiat currencies on digital rails to increase the demand for their currencies internationally, hoping to offset the inflationary effects of money printing.
