China Launches Offshore Yuan Stablecoin in Kazakhstan
China has made a strategic move in the digital currency space with the launch of AxCNH, its first regulated offshore yuan stablecoin. The announcement came during the 10th Belt and Road Summit in Hong Kong on September 17, 2025. This yuan-pegged stablecoin carries Kazakhstan’s Astana Financial Services Authority license, marking a significant step in China’s blockchain ambitions.
The stablecoin represents China’s calculated approach to expanding its financial influence through digital assets. The AxCNH stablecoin aims to streamline cross-border payments and settlements, particularly for offshore Chinese businesses. This development signals a shift in how nations leverage blockchain technology for economic expansion.
AxCNH Yuan Stablecoin Technology and Infrastructure
Hong Kong-based fintech company AnchorX developed the AxCNH stablecoin using advanced blockchain infrastructure. AnchorX and Zoomlion have completed pilot transactions of AxCNH on the Conflux blockchain, demonstrating the system’s operational capability. The digital currency maintains a 1:1 peg ratio with the offshore Chinese yuan (CNH).
The stablecoin is pegged 1:1 to the offshore yuan and facilitates cross-border payments and real-world asset transfers. Conflux Network provides the underlying blockchain technology that powers these transactions. The platform offers high-performance capabilities suitable for large-scale international settlements.
Yuan Stablecoin Targets Belt and Road Initiative Countries
The asset will be available for cross-border settlements across more than 150 countries engaged in economic cooperation. The Belt and Road Initiative is the primary framework for AxCNH’s expansion strategy. Kazakhstan represents a crucial starting point for this digital currency rollout.
The initiative is expected to boost digital yuan adoption in key markets such as Singapore and Malaysia. AnchorX has partnered with major Chinese corporations, including Zoomlion and Lenovo, for implementation. These partnerships provide the infrastructure needed for widespread adoption across participating nations.
Offshore Yuan Stablecoin Market Implications
At the first stage, only professional market participants will have access to trading. The phased rollout strategy allows for controlled testing and refinement before broader distribution. This measured approach helps maintain stability and regulatory compliance.
The stablecoin operates on both Ethereum and Conflux blockchains, providing flexibility for users. Major partners like Hony Capital support the infrastructure behind AxCNH. The digital currency bypasses traditional dollar-dominated payment systems, offering an alternative for international transactions.
Kazakhstan’s ATAIX exchange lists AxCNH, giving it a regulated trading venue. The exchange provides liquidity and price discovery for the stablecoin. This listing establishes a foundation for expanding trading access to other regional exchanges.
Yuan Stablecoin Challenges Dollar Dominance Strategy
China’s yuan stablecoin launch represents a direct challenge to U.S. dollar dominance in global trade. The AxCNH provides nations with an alternative reserve-backed digital asset for settlements. This diversification of payment options reduces reliance on traditional Western financial systems.
Pilot transactions show potential cost and efficiency benefits compared to conventional payment methods. The blockchain-based system reduces transaction times from days to minutes. Lower costs make the stablecoin attractive for businesses conducting frequent cross-border transactions.
The digital currency aligns with China’s broader strategy of yuan internationalization. Blockchain technology enables faster settlement and greater transparency in international trade. These advantages position AxCNH as a competitive option for businesses seeking efficient payment solutions.
Conclusion
The launch of AxCNH marks a pivotal moment in the evolution of digital currency. China demonstrates how nations can leverage blockchain technology for economic influence. The stablecoin’s success depends on adoption rates across Belt and Road Initiative countries and regulatory acceptance.
This development reshapes the landscape of international payments and settlements. The coming months will reveal how effectively AxCNH competes with dollar-based alternatives. Market participants should monitor regulatory developments and adoption metrics closely.
