The stablecoin, created by the local financial startup AnchorX, will first be released on the Conflux Network and then on Ethereum.Conflux will supply the superior security, low latency, cost-effectiveness, and scalability of the underlying technology.

With this launch, AnchorX hopes to establish itself as Asia's most reputable supplier of digital currency solutions, enabling dependable and effective international trade.Initially published on the Conflux public blockchain, AxHKD makes use of strong cybersecurity protocols and cutting-edge distributed ledger technology. The 1:1 peg to the HKD is guaranteed, and it is supported by reserves of highly liquid assets. These reserves are kept by licensed financial institutions in Hong Kong and are safeguarded by a segregated trust arrangement. The custodian services for the AxHKD issue are provided by AnchorX's strategic partner, OKLink Trust.

AnchorX focuses on two main uses of AxHKD. First off, AxHKD improves cross-border transactions between Hong Kong/mainland China and the international market by acting as a catalyst for global payments. For Belt and Road partners with less developed banking systems, this is especially advantageous. Second, by serving as a trustworthy fiat-on-chain tool for virtual asset trading, AxHKD helps to close the divide between traditional and digital assets in Hong Kong and encourages innovation in real-world asset trading.

Leaders in the blockchain technology and traditional finance sectors support the project, among them Hony Capital, one of China's top investment management companies, which manages assets valued at over USD 16 billion.The declaration comes in response to recent moves made by Hong Kong authorities to suggest a set of rules for stablecoin producers.

In order to receive public feedback on the proposed legislation governing stablecoin issuers, the Financial Services and the Treasury Bureau, in collaboration with the Hong Kong Monetary Authority (HKMA), published a Consultation Paper on December 27, 2023. The Discussion study and Conclusion Paper published by the HKMA in January 2022 and January 2023, respectively, are the foundations of this study.

Chief Compliance Officer at AnchorX, Byron Wong, stated, "Hong Kong has adopted one of the most proactive approaches to stablecoin regulation globally," in reference to the company's ongoing dedication to adhering to regulatory standards. Our goal is to make sure that AxHKD closely adheres to the suggested stablecoin guidelines. In addition, we intend to look into applying to be a part of the forthcoming regulatory sandbox, where we can offer our first-hand, useful knowledge to help shape a successful stablecoin regulatory framework."