China has unveiled its first regulated CNH stablecoin, AxCNH, sparking discussions about its potential to erode the U.S. dollar’s longstanding dominance. Launched amid growing geopolitical tensions and a push for yuan internationalization, this development highlights Beijing’s strategic efforts to leverage blockchain technology for cross-border payments.
The Debut of AxCNH – First Chinese CNH Stablecoin
The CNH stablecoin made its official debut at the 10th Belt and Road Summit in Hong Kong on September 16, 2025, organized by fintech firm AnchorX. Pegged to the offshore Chinese yuan (CNH), AxCNH is designed to facilitate seamless transactions along China’s Belt and Road Initiative routes, which span Asia, Africa, Europe, and beyond.
Unlike the onshore yuan (CNY), CNH operates with fewer restrictions, making it ideal for global trade. Backed by secure offshore reserves, including fiat deposits and government debt instruments, the stablecoin promises stability and transparency through independent audits.
This isn’t China’s first foray into digital assets; the country has been testing its central bank digital currency (CBDC), the e-CNY, for years. However, AxCNH stands out as a privately issued, licensed stablecoin operating under Hong Kong’s regulatory sandbox, blending innovation with compliance.
Built on the high-speed Conflux blockchain, it aims to cut transaction costs and times compared to traditional systems like SWIFT, which are often USD-centric.
Key Features of the CNH Stablecoin
To understand why AxCNH is generating buzz, here are its core attributes:
- 1:1 Pegging and Backing: Fully collateralized with CNH reserves held in trusted financial institutions, ensuring minimal volatility.
- Focus on B2B Transactions: Primarily for business-to-business use, such as supply chain financing and remittances, targeting emerging markets in the Belt and Road network.
- Regulatory Compliance: Licensed in Hong Kong, with expansion plans, addressing concerns over crypto’s wild west reputation.
- Integration Potential: Proposals are underway to incorporate AxCNH into decentralized finance (DeFi) platforms like dForce, potentially unlocking yield opportunities in global markets.
- Geopolitical Edge: By promoting yuan usage, it could reduce reliance on USD-denominated stablecoins like USDT and USDC, which dominate 99% of the $288 billion stablecoin market.
Implications for Global Finance
The launch comes at a time when stablecoins are exploding in popularity, with the market projected to grow exponentially. For China, AxCNH represents a digital counteroffensive against dollar hegemony, especially in light of sanctions and trade frictions. Analysts suggest it could boost the yuan’s share in global reserves, currently at about 2.5%, by making it more accessible for international settlements.
However, challenges remain. Strict crypto regulations in mainland China, competition from established USD stablecoins, and adoption hurdles in non-aligned countries could temper its impact. Still, if successful, this CNH stablecoin might signal the start of a multipolar currency era, where digital assets play a pivotal role in economic power shifts.
As the world watches, AxCNH‘s trajectory could redefine how nations navigate financial sovereignty in the blockchain age.
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