KEY FACTS: Conflux, a leading Chinese blockchain platform, has announced the launch of an offshore yuan-backed stablecoin and the Conflux 3.0 network upgrade, unveiled at a Shanghai conference. The stablecoin, developed with AnchorX and Eastcompeace Technology, aims to facilitate cross-border payments within China’s Belt and Road Initiative, targeting regions like Central and Southeast Asia, with potential real-world asset applications. Conflux 3.0, set to launch in August, boasts a capacity of 15,000 transactions per second and native AI agent support, positioning it as a high-performance blockchain for global trade.
Source: Yuan
Conflux Unveils Offshore Yuan-Backed Stablecoin and Conflux 3.0 Upgrade
Chinese blockchain pioneer Conflux has announced the launch of a new offshore yuan-backed stablecoin alongside a major network upgrade, Conflux 3.0, during a high-profile three-day conference in Shanghai. The developments, reported by the Shanghai municipal government, mark a significant milestone in China’s evolving approach to blockchain technology and digital currencies, particularly in the context of its ambitious Belt and Road Initiative (BRI).
The new stablecoin, designed to facilitate cross-border payments within the BRI’s expansive network, is backed by the offshore Chinese yuan (CNH), a currency free from the monetary policies of mainland China’s central bank. Conflux has partnered with fintech firm AnchorX and Shenzhen-listed information technology security provider Eastcompeace Technology to develop and roll out this digital currency. While it remains unclear whether the stablecoin is AnchorX’s recently approved AxCNH or a distinct project, the initiative builds on AnchorX’s in-principle approval from Kazakhstan’s Astana Financial Services Authority (AFSA) in late February for its yuan-pegged stablecoin. This regulatory nod positions the stablecoin for pilot programs in Central Asia, Southeast Asia, and other key BRI regions, in collaboration with cryptocurrency wallet provider TokenPocket.
The stablecoin aims to serve offshore Chinese entities and countries involved in the BRI, a global infrastructure and economic strategy launched by China in 2013 to enhance trade and investment across Asia, Africa, and Europe. The stablecoin, leveraging blockchain technology, will reduce transaction costs, enhance financial inclusion in regions with underdeveloped financial infrastructure, and streamline cross-border settlements. Conflux has also signaled plans to explore real-world asset (RWA) applications, potentially expanding the stablecoin’s utility beyond payments to include tokenized assets like infrastructure or commodities.
This initiative aligns with China’s ambition to internationalize the yuan, which currently holds a 2.89% share of global payments compared to the U.S. dollar’s dominant 48.46%, according to SWIFT data. Former Deputy Finance Minister Zhu Guangyao recently emphasized the urgency of yuan-backed stablecoins to counter the growing influence of U.S. dollar-pegged stablecoins, which he described as an extension of U.S. monetary dominance. The Conflux stablecoin, supported by a regulatory-compliant blockchain, could serve as a blueprint for efficient, secure, and inclusive digital transactions on a global scale.
Alongside the stablecoin launch, Conflux unveiled Conflux 3.0, a major upgrade to its Layer 1 blockchain, set to go live in August. The upgraded network boasts a processing capacity of up to 15,000 transactions per second (TPS), a significant leap from its previous capabilities, positioning it as one of the fastest public blockchains. The upgrade also introduces native support for on-chain artificial intelligence (AI) agent calls, enabling advanced smart contract functionalities and large-scale settlement of cross-border payments and RWAs.
Conflux 3.0 is designed to meet the demands of high-volume transactions, particularly for BRI-related trade corridors involving countries like Singapore, Indonesia, Malaysia, and Kazakhstan. The network’s enhanced scalability and AI integration signal Conflux’s ambition to position itself as a global leader in blockchain infrastructure, capable of supporting both financial and technological innovation. The upgrade has already garnered significant attention, with state media coverage lending legitimacy to the project and fueling speculative interest among traders.
The dual announcements triggered a dramatic surge in the price of Conflux’s CFX token, which jumped 57% in 24 hours and briefly reached $0.24, a level not seen since December. Trading volume skyrocketed from under $60 million to over $1.7 billion in just two days, pushing Conflux’s market capitalization above $1.09 billion and ranking it among the top 120 cryptocurrencies. The rally, described by some analysts as a “brutal short squeeze,” reflects renewed investor confidence in Conflux’s China-aligned narrative and its strategic partnerships.
Conflux’s rise is not new. Often dubbed the “Chinese Ethereum” on social media, the network has previously rallied on high-profile collaborations, such as its partnership with China Telecom to develop blockchain-enabled SIM cards and pilots with McDonald’s China and the city of Shanghai for Web3 and metaverse initiatives. As China’s only regulatory-compliant public blockchain, Conflux enjoys a unique position in a country known for its stringent cryptocurrency regulations.
Mainland China has historically maintained one of the most restrictive approaches to cryptocurrencies, with a blanket ban on crypto trading enacted in 2021. However, recent developments suggest a softening stance toward stablecoins, particularly those backed by the yuan. Earlier this month, the Shanghai State-owned Assets Supervision and Administration Administration Commission (SASAC) held a meeting to discuss strategic responses to stablecoins, with director He Qing calling for “greater sensitivity to emerging technologies and enhanced research into digital currencies.”
This shift comes as Hong Kong emerges as a hub for stablecoin innovation. The city’s new LEAP regulatory framework, set to take effect on August 1, 2025, has attracted 40 stablecoin license applications from major firms like JD.com, Ant Group, and Circle. The framework, overseen by the Securities and Futures Commission (SFC), aims to foster real-world blockchain use cases while ensuring compliance with strict capital and transaction monitoring requirements. Conflux’s stablecoin initiative, alongside these developments, underscores a growing effort to integrate yuan-backed digital currencies into global trade networks without risking capital account liberalization.
The Conflux stablecoin and network upgrade carry significant geopolitical weight. The BRI, often described as China’s flagship strategy for global influence, seeks to connect Asia, Africa, and Europe through infrastructure projects like roads, railways, ports, and digital networks. Conflux's introduction of a yuan-backed stablecoin aims to embed the Chinese currency into the digital infrastructure of BRI countries, potentially challenging the dominance of U.S. dollar-based stablecoins like Tether (USDT).
From a technical perspective, Conflux 3.0’s ambitious claims of 15,000 TPS and AI integration await full validation, as detailed technical specifications have not yet been released. However, the network’s track record of regulatory compliance and high-profile partnerships lends credibility to its claims.
Conflux’s latest moves position it at the forefront of China’s blockchain ambitions, blending technological innovation with strategic economic goals. The offshore yuan stablecoin and Conflux 3.0 upgrade could attract more developers and decentralized applications (dApps) to the network, expanding its ecosystem. Strategic alliances with financial institutions, tech firms, and governments may further amplify the stablecoin’s reach, particularly in BRI countries.
Information Sources:
If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!
This post was created via INLEO. What is INLEO?
INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application, Inleo.io, allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.
Let's Connect
Hive: inleo.io/profile/uyobong/blog
Twitter: https://twitter.com/Uyobong3
Discord: uyobong#5966