Conflux Shakes Up Crypto: Yuan-Backed Stablecoin Launch Imminent

China's blockchain heavyweight Conflux is making a power play—launching a yuan-pegged stablecoin to bridge crypto and traditional finance.

Why it matters: This could be the first credible challenger to USDT's dominance in Asia's crypto markets. Regulators are watching closely.

The twist: Unlike other stablecoins, this one's backed by actual yuan reserves—not just promises. But let's see how 'stable' it stays when China's monetary policy shifts.

Finance jab: Because nothing says 'decentralization' like a government-controlled currency wrapped in blockchain glitter.

Conflux said the yuan-backed stablecoin will target offshore Chinese businesses and nations taking part in China’s Belt and Road Initiative. It will look into real‑world asset applications as part of its rollout.

China launched the Belt and Road Initiative in 2013 to boost its global influence through large‑scale infrastructure and trade links. 

The plan seeks to connect continents like Europe, Asia, and Africa via land and sea corridors, supporting investment and trade through roads, rail networks, digital systems, and ports.

China’s 2nd-largest fund launches world’s first renminbi tokenized money fund

In related news from the stablecoin sector, Hong Kong has seen a surge of interest in recent weeks. Up to 40 applications for stablecoin licences have been filed in the city.

Applicants include major firms, including JD.com, Circle, and ANT Group. Their bids come after Hong Kong’s government unveiled a framework called “LEAP,” which takes effect on August 1 and sets out licensing rules for the issuers of stablecoins.

Under the new regime, the city’s Securities and Futures Commission will oversee the granting of licences to stablecoin providers, a MOVE authorities say will help foster use cases in the real world.

Meanwhile, China Asset Management’s Hong Kong unit, the country’s 2nd largest fund, launched the world’s 1st renminbi‑denominated tokenized money fund on Thursday. 

“Our tokenised products are designed to welcome the arrival of stablecoins, whether it is Hong Kong dollars, renminbi or U.S. dollar,” said Tian Gan, CEO of ChinaAMC Hong Kong. He was referring to the city’s upcoming stablecoin rules scheduled to kick in on August 1.

Gan added that his firm aims to be among the first to provide yield‑bearing products tailored for stablecoin users.

According to a Reuters report earlier this month, China’s leading tech companies have urged the national bank to let stablecoins tied to the offshore yuan launch in Hong Kong. They argue this step could boost China’s currency globally and offer a counterweight to the growing digital dominance of the U.S. dollar.

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