On September 17, 2025, Kazakhstan became the site of a landmark development in the world of digital finance: the launch of AxCNH, the first regulated offshore stablecoin tied to the Chinese yuan (specifically, the offshore yuan, known as CNH). Developed by AnchorX, a Hong Kong‐based fintech, and built on technology from Conflux, a Chinese‐backed blockchain infrastructure, AxCNH marks a new chapter in China’s efforts to extend the reach of its currency and reshape cross-border payments.
Kazakhstan granted AnchorX a license from its Astana Financial Services Authority (AFSA) to issue fiat‐pegged stablecoins within the Astana International Financial Centre (AIFC). With official approval and regulation in place, AxCNH is fully collateralized with CNH reserves held in regulated institutions, backed 1:1, and redeemable for the underlying fiat currency. The smart contracts powering it run on the Conflux network. The plan includes listing on Kazakhstan’s ATAIX exchange in trading pairs such as AxCNH:KZT (Kazakh tenge) and AxCNH:USDT, and exploring use cases spanning trade settlement, payment flows between Chinese companies and Belt & Road Initiative partners, and tokenization of real-world assets.
There are several overlapping motives behind this initiative, both economic and strategic.
First, this move aligns with China’s broader strategy of yuan internationalization. While the onshore yuan remains tightly controlled through capital flow restrictions, trade in offshore yuan (CNH) has historically served as one path for international use. By launching a regulated stablecoin pegged to CNH, China—and its partners—gain a new tool to facilitate trade settlement, especially with neighboring or Belt & Road Initiative (BRI) countries. For Kazakhstan, which has deepening trade links with China, the stablecoin offers potential cost savings, speedier payments, and reduced dependence on the U.S. dollar for cross-border transactions.
Second, the use of blockchain technology implicitly aims to increase efficiency and transparency. Cross-border payments and trade settlements are often hampered by delays, expensive intermediaries, currency conversion costs, and regulatory friction. A stablecoin like AxCNH, backed by reserves and regulated, promises lower transaction costs and faster settlements, assuming technical, legal, and operational components are well designed.
Third, geopolitics plays a role. As global financial tensions increase, especially with U.S. dollar dominance facing challenges, countries like China are looking for alternate rails for finance. AxCNH could be part of a multi-pronged strategy that includes the digital yuan (central bank digital currency) and enhanced usage of offshore yuan through tools beyond the traditional foreign exchange and banking system.
AxCNH is built on several key structural features designed to ensure trust and compliance.
The reserves that back AxCNH are held in regulated custodian banks, ensuring that for every token issued, there is a corresponding reserve in CNH. That provides the redemption guarantee, meaning token holders can, in theory, exchange their stablecoin for the fiat currency without loss. The issuance takes place under licensure from Kazakhstan’s AFSA, giving it regulatory legitimacy in that jurisdiction.
Technically, the stablecoin is deployed using Conflux’s blockchain, which is backed by the Chinese state and positioned as compliant with regulatory expectations. AnchorX has signed memoranda of understanding with companies such as Zoomlion, Lenovo, and ATAIX (a major crypto exchange in Kazakhstan), to explore real-world applications: settlement in trade, payments between China and firms in BRI member states, and possibly tokenization of real-world assets.
From a market access standpoint, because it is listed on ATAIX, there are already trading pathways in Kazakhstan, including currency pairs with the local tenge and with USDT, which helps bridge between traditional stablecoins and this new yuan-pegged instrument.
AxCNH has the potential to deliver meaningful advantages, especially in settings where cross-border trade between China and its trading partners is high. For traders and companies, settlement times could shrink, foreign exchange conversion costs might fall, and payment certainty could rise. For Kazakhstan, the stablecoin adds another vector of financial infrastructure, possibly attracting fintech activity, blockchain projects, and regulated stablecoin business.
For China, success with AxCNH could lend credibility to its push to make the yuan more usable internationally. It shows that China is open to experimentation in digital assets—though in tightly controlled, regulated frameworks—and willing to support tools that work alongside its CBDC and offshore yuan markets.
Another benefit is smoother financial inclusion: in theory, an asset like AxCNH can help reduce friction for smaller companies and cross-border traders who currently rely on intermediaries, letters of credit, banking systems that are slower or more expensive. If regulatory compliance, custody, and auditability are strong, this stablecoin could build trust in digital finance in Central Asia and beyond.
Of course, launching a regulated stablecoin is only the beginning. Many challenges must be navigated.
Volatility in global macro-conditions could expose risks. While AxCNH is pegged to CNH, demand for CNH, exchange rate pressures, and shifts in global currency markets could affect how users view its stability and value. If CNH itself suffers depreciation or capital flight pressures, that could impact confidence in AxCNH.
Regulatory risk is also real. Kazakhstan’s license gives status, but cross-border stablecoins often involve issues around KYC/AML, custody of reserves, transparency of audits, cross-jurisdictional legal clarity, and operational risk. Oversight must be rigorous. Any mismanagement, loss of reserves, or security breach could damage not only AxCNH but also trust in regulated stablecoins more broadly.
Adoption is another hurdle. The theoretical benefits only matter if companies, exchanges, payment processors, and trade actors use AxCNH. If usage remains niche or limited to certain corridors, network effects might be weak. Also, earning trust in settlements, real-world usage, and liquidity (the ability to exit tokens for fiat reliably) will be crucial.
There’s also the risk of competition and pushback. U.S.-dollar-denominated stablecoins are deeply entrenched, and many global players are comfortable with them. Payment infrastructure, regulation, correspondent banking, and FX markets are already built around the dollar. Convincing enough participants to adopt yuan-linked alternatives will take time. Furthermore, sanctions risk, international legal pressures, and geopolitical tensions could complicate how institutions in other countries engage with a yuan-anchored stablecoin.
The AxCNH launch could serve as a case study of how offshore stablecoins, regulated and backed by reserves, might help rewire cross-border trade flows. If successful, it could encourage similar stablecoin efforts in other regions, not necessarily pegged to yuan but to other currencies, under regulatory oversight, to facilitate trade.
It also signals that China is willing to use regulated stablecoins alongside digital RMB efforts as part of its financial strategy. With AxCNH, digital rails, blockchain infrastructure, and bilateral regulatory cooperation are being tested in practice—not just in theory.
For Kazakhstan, the move strengthens its role as a financial crossroads in Central Asia. Being one of the first countries to license and host an offshore stablecoin of this kind may draw capital, fintech firms, and digital asset projects to base or partner there.
Finally, this may contribute to a gradually more multipolar currency system—where the U.S. dollar remains central but other currencies, supported by blockchain tools, find more robust secondary roles, especially in cross-border trade, remittances, and regional finance.
The debut of AxCNH in Kazakhstan represents more than just another stablecoin being issued. It is a strategic financial innovation with geopolitical, economic, and technological dimensions. Anchored to the offshore Chinese yuan, built on Conflux, regulated by Kazakhstan, and intended for real trade and cross-border settlement, it combines many of the elements now considered crucial for a next-generation stablecoin that is both useful and credible.
Its success will depend heavily on trust, regulatory enforcement, liquidity, and adoption—but for now, AxCNH offers a glimpse into what stablecoins might become in a world trying to build payment systems less reliant on traditional dollared rails. For those watching the interplay between blockchain, state strategy, and the future of global currencies, this is one of 2025’s most important developments.