AnchorX envisions becoming the most trusted provider of digital currency solutions in Asia, empowering reliable and efficient global exchanges.
Industry leaders from both traditional finance and blockchain technology space sponsored the founding of AnchorX. Hony Capital, a leading investment management firm in China overseeing over USD 16 billion in assets, contributes resource support and business synergies. Additionally, the Conflux Network provides the underlying technology with its superior scalability, security, low latency and cost-effectiveness.
The AxHKD will utilize world-class distributed ledger technology and robust cybersecurity measures. It ensures a 1:1 peg to the HKD, backed by high-quality liquid asset reserves. These reserves are protected by a segregated trust arrangement and held by regulated financial institutions in Hong Kong. OKLink Trust, a strategic partner of AnchorX, will provide custody services.
AnchorX targets two primary applications for AxHKD. Firstly, as a catalyst for global payments, AxHKD facilities cross-border business activities between Hong Kong and the global market. This is particularly beneficial for Belt and Road partners with less developed banking infrastructures. Secondly, AxHKD acts as a reliable fiat-on-chain instrument for virtual asset trading, paving the way for innovation in Real-World Assets and bridging the gap between traditional and digital assets in Hong Kong.
The announcement follows the recent initiatives by Hong Kong authorities to propose a regulatory regime for stablecoin issuers. On December 27, 2023, the Financial Services and the Treasury Bureau, in conjunction with the Hong Kong Monetary Authority ("HKMA"), released a Consultation Paper to gather public comments on the proposed legislation to regulate stablecoin issuers. This paper builds on the Discussion Paper released by the HKMA in January 2022 and the subsequent Conclusion Paper in January 2023.
Byron Wong, the Chief Compliance Officer at AnchorX, commented on the company's unwavering commitment to meeting regulatory standards, "Hong Kong has adopted one of the most proactive approaches to stablecoin regulation globally. We want to ensure that AxHKD tightly aligns with the proposed stablecoin standards. We will also explore applying for participation in the upcoming regulatory sandbox and hope to contribute our first-hand practical insights to the formation of a successful stablecoin regulatory regime."
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