China Launches AxCNH: First Regulated Offshore Yuan-Pegged Stablecoin in Kazakhstan

In a significant move to internationalize the Chinese yuan and enhance cross-border trade, China has introduced AxCNH, the world's first regulated offshore yuan-pegged stablecoin. Launched on September 17, 2025, at the 10th Belt and Road Summit in Hong Kong, AxCNH aims to facilitate seamless digital transactions between China and countries involved in the Belt and Road Initiative (BRI), starting with Kazakhstan.

What Is AxCNH?

AxCNH is a stablecoin developed by Hong Kong-based fintech firm AnchorX, pegged to the offshore Chinese yuan (CNH). Unlike traditional cryptocurrencies, stablecoins are designed to maintain a stable value, often by being backed by a reserve asset. AxCNH aims to provide a digital alternative to traditional fiat currencies, facilitating faster and more efficient cross-border transactions.

The stablecoin is built on Conflux, a Chinese government-backed blockchain network, ensuring compliance with China's regulatory standards while offering the scalability and security required for international transactions.

Kazakhstan: A Strategic Launchpad

Kazakhstan has been chosen as the launch country for AxCNH due to its strategic position as a key partner in China's Belt and Road Initiative (BRI). The Astana Financial Services Authority (AFSA) granted AnchorX the necessary regulatory approvals to issue and trade AxCNH, making it the first licensed offshore yuan-pegged stablecoin. This partnership underscores the growing economic ties between China and Kazakhstan, with the stablecoin serving as a tool to enhance trade and investment flows between the two nations.

Strategic Partnerships

To bolster the adoption and utility of AxCNH, AnchorX has forged several strategic partnerships:

• Zoomlion: A global leader in mechanical equipment manufacturing, Zoomlion has operations in over 100 countries and a significant presence across BRI regions. The collaboration aims to streamline cross-border payments using AxCNH, enabling Zoomlion and its BRI partners to enhance settlement efficiency and reduce costs.
• Lenovo: A multinational technology company, Lenovo's partnership with AnchorX focuses on exploring the use of AxCNH in digital asset trading and Real-World Asset (RWA) tokenization.
• ATAIX: A licensed cryptocurrency exchange in Kazakhstan, ATAIX has agreed to list AxCNH for trading in pairs with KZT and USDT, providing liquidity and access to professional clients.
• Conflux: The blockchain platform provides the technological infrastructure for AxCNH, ensuring secure and efficient transactions.

Implications for Global Finance

The introduction of AxCNH has several far-reaching implications:

• Reducing Dependency on the U.S. Dollar: By offering an alternative to dollar-pegged stablecoins like USDT and USDC, AxCNH provides countries and businesses with a means to conduct transactions without relying on the U.S. dollar, thereby mitigating exposure to dollar-related risks.
• Enhancing Cross-Border Transactions: AxCNH aims to streamline cross-border payments, reducing transaction costs and settlement times. This is particularly beneficial for countries involved in the BRI, where efficient financial transactions are crucial for the success of infrastructure and development projects.
• Promoting the Internationalization of the Yuan: The stablecoin aligns with China's broader strategy to promote the international use of its currency. By providing a digital yuan alternative, China seeks to increase the yuan's presence in global trade and finance, challenging the dominance of the U.S. dollar.
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Looking Ahead

The launch of AxCNH is just the beginning. AnchorX plans to expand the stablecoin's availability to other countries participating in the BRI, aiming to create a network of digital currencies that facilitate seamless cross-border transactions. Additionally, the success of AxCNH could pave the way for the development of other yuan-pegged digital assets, further promoting the internationalization of the Chinese currency.