Kazakhstan’s Offshore Yuan Stablecoin AxCNH Debuts: A Boost to Global Trade

Kazakhstan has recently made a notable move in the world of digital currency by introducing the world’s first licensed offshore yuan-pegged stablecoin, AxCNH. This announcement was made at the 10th Belt and Road Summit in Hong Kong, positioning itself as a significant player in cross-border payments and trade settlements.

AxCNH: The Offshore Yuan Stablecoin Unveiled

The Hong Kong summit, a joint effort by the Hong Kong SAR Government and the Hong Kong Trade Development Council, served as the launching pad for AxCNH. AnchorX, a fintech firm based in Central Asia, marked its entry into the global financial network by obtaining a landmark license from Kazakhstan’s Astana Financial Services Authority. Their flagship product, AxCNH, is pegged to the offshore yuan (CNH) and aims to streamline international trade and financial transactions.

To further its reach, AnchorX signed strategic agreements with major corporations like Zoomlion, Lenovo, and China Brilliant Global. These partnerships focus on integrating AxCNH into various applications, including international trade payments and digital asset transactions.

A Surging Trade Landscape and Cost Reduction

China’s trade with Belt and Road countries remains robust, reaching a staggering $3.1 trillion in 2024. Notably, this accounts for over half of China’s total trade volume. The release of AxCNH is timely, tapping into the increasing demand for efficient cross-border settlement solutions. The stablecoin promises to mitigate currency fluctuation risks while reducing transaction and settlement costs, thereby benefiting both Belt and Road nations and Chinese businesses.

Understanding CNH Versus CNY

Offshore Renminbi (CNH)

The CNH represents the yuan circulating outside China’s borders in financial hubs such as Hong Kong, Singapore, and London. Determined by international markets, CNH offers more flexibility and is widely used for offshore transactions and international investments.

“For investors managing yuan accounts in Hong Kong or engaging in international transactions, they deal with CNH.”

Onshore Renminbi (CNY)

In contrast, the CNY is the yuan used within China’s domestic market, regulated by the People’s Bank of China, with its exchange rate closely controlled by national monetary policies.

“Yuan held in bank accounts within cities like Beijing, Shanghai, and Shenzhen is categorized as CNY.”

Pioneering Tests and Technical Integration

AnchorX has already embarked on pilot projects involving AxCNH, notably with engineering giant Zoomlion. These early tests on the Conflux blockchain aim to enhance cross-border payment efficiency and streamline financial flows across international partnerships.

Exchanges Partnerships: AxCNH Trading Pairs

In a parallel development, AnchorX inked a deal with Kazakhstan’s licensed ATAIX Eurasia exchange, where AxCNH will feature trading pairs such as AxCNH:KZT and AxCNH:USDT. The deployment on Conflux has laid the groundwork for broader scale applications, heralding a new era of digital transactions.