The world’s first regulated offshore yuan-linked stablecoin was introduced this month in Kazakhstan, signaling China’s deeper interest in using blockchain technology to support international commerce. The launch, though conducted with little fanfare, has been described by experts as a development with potential long-term effects on the way global cross-border payments are structured. Executives linked to the project suggested that this could act as a catalyst for reshaping international financial flows.
The stablecoin, known as AxCNH, is pegged to the offshore Chinese yuan and became operational on September 17. It was issued by Hong Kong-based fintech firm AnchorX, supported by blockchain infrastructure provided by Conflux, after receiving regulatory approval in Kazakhstan, Central Asia’s largest economy. Industry observers interpret this step as part of Beijing’s wider ambition to reduce reliance on the US dollar in global digital finance while advancing the internationalisation of the yuan.
China’s long-standing currency aspirations
China has repeatedly emphasized its aim of establishing the yuan as a global currency to reflect its standing as the world’s second-largest economy. However, capital controls and large trade surpluses have historically hindered that ambition. Analysts noted that by encouraging offshore yuan-backed stablecoins, China was exploring new methods to promote wider usage of its currency globally.
Reports last month indicated that Chinese authorities were considering yuan-backed stablecoins as a mechanism to accelerate adoption, alongside efforts such as the central bank’s digital yuan project. Industry experts argued that, as US dollar stablecoins continued to grow in popularity, China could not afford to leave its currency absent from blockchain-based ecosystems in the decades to come.
Regulatory dynamics and Beijing’s stance
Conflux executives pointed out that issuing offshore yuan stablecoins would not necessarily require direct approval from China’s central bank. However, they suggested Beijing would support such initiatives if they contributed to boosting cross-border trade. They added that as a major economic power, China was expected to explore every promising technological direction, including blockchain-based solutions.
Stablecoins, typically pegged to fiat currencies such as the US dollar, are widely considered an efficient, low-cost tool for international payments. They also function as a bridge between conventional finance and digital assets. China’s renewed push comes in the context of geopolitical developments that have altered global trade flows and raised questions about long-term dependence on the dollar.
AxCNH: World's First Licensed Offshore Chinese Yuan-Pegged Stablecoin Debuts at the 10th Belt and Road Summit https://t.co/ny34JMOmdu
— AnchorX (@AnchorX_Ltd) September 18, 2025
Belt and Road Initiative connections
Conflux, which has a government mandate to establish blockchain platforms linking countries under the Belt and Road Initiative (BRI), played a central role in enabling the AxCNH launch. The initiative is viewed as China’s flagship international cooperation program, and the integration of stablecoin solutions is expected to strengthen financial interactions within the network.
AnchorX, the issuer of the stablecoin, has emphasized that the product is designed to provide a cost-effective and efficient payment solution. The firm indicated that it would help facilitate cross-border transactions between BRI member nations and offshore Chinese entities. Backed by Conflux and investment firm Hony Capital, AnchorX moved forward with the launch after securing approval from Kazakhstan’s regulators, a country whose largest trading partner is China.
Positive outlook but cautious regulation
Analysts believe the stablecoin initiative represents another avenue for promoting the offshore yuan, highlighting that China’s government is likely to view blockchain technology positively while maintaining a careful regulatory approach. While Hong Kong has created a framework for licensing stablecoin issuers, it has yet to issue approvals. In mainland China, cryptocurrency trading has been prohibited since 2021, suggesting that while the government supports innovation in cross-border payments, it will proceed cautiously.
Industry experts maintain that the offshore yuan stablecoin could become a critical tool in advancing China’s international financial agenda, positioning the yuan more firmly within the digital economy and offering an alternative to dollar-dominated crypto markets.
