Key Points :
- AnchorX launched AxCNH, the first licensed offshore Yuan-pegged stablecoin (tied to CNH), designed for cross-border settlements along China’s Belt and Road Initiative.
- BDACS introduced KRW1, a fully backed South Korean Won stablecoin, initially deployed on the Avalanche blockchain, with real-time proof of reserves and banking integration.
- Both stablecoins adopt an over-collateralized, 1:1 reserve model (backed by fiat deposits or government debt), aiming for transparency and stability rather than algorithmic risk.
- These launches underscore a geostrategic push to place national currencies on blockchain rails, reducing dependence on U.S. dollar–pegged stablecoins and offering new rails for international trade.
- Challenges remain: capital controls, regulatory friction, liquidity in offshore currency markets, and geopolitical risk could slow adoption.
1. Introduction: A New Chapter in Stablecoin Competition
In September 2025, the global stablecoin landscape witnessed a significant inflection point. China-backed fintech firm AnchorX unveiled AxCNH, the first licensed offshore yuan-linked (CNH) stablecoin during the Belt and Road Summit held in Hong Kong. The following day, South Korean digital asset infrastructure provider BDACS announced KRW1, a fully backed stablecoin pegged to the Korean won, launching initially on the Avalanche blockchain.
These coordinated moves highlight how stablecoins have become more than crypto utilities — they are emerging strategic tools in national monetary, trade, and geopolitical ambitions. For practitioners, investors, and builders, they also open fresh opportunities to participate in currency rails anchored in blockchain rather than correspondent banking systems.
2. AxCNH: China’s Offshore Yuan on Chain
2.1 What Is AxCNH and Why It Matters
AxCNH is a stablecoin pegged 1:1 to the offshore Chinese yuan (CNH), distinct from the onshore CNY which is tightly regulated and capital-controlled. AnchorX secured a license for issuance via Kazakhstan’s Astana Financial Services Authority (AFSA), making AxCNH the “first licensed offshore yuan stablecoin.”
The token aims to streamline cross-border trade and settlement especially among Belt and Road Initiative (BRI) participants, reducing friction, cost, and reliance on dollar-based rails.
2.2 Technical & Commercial Partnerships
To ensure liquidity and adoption, AnchorX has formed strategic memoranda with major corporations including Lenovo, Zoomlion, China Brilliant Global, and Conflux, the blockchain infrastructure provider. In fact, Zoomlion has already tested AxCNH transactions on Conflux, integrating real-world trade flows over the blockchain.
AxCNH has also been listed (initially for professional users) on ATAIX Eurasia exchange in pairs like axCNH:KZT and axCNH:USDT, seeking to anchor it in regional liquidity pools.
2.3 Economic & Strategic Ambitions
By placing the yuan on blockchain rails, China hopes to amplify international demand for its currency, reduce settlement cost (estimated to be up to 30% lower than bank-based systems) and gradually challenge the dominance of U.S. dollar–pegged stablecoins. Analysts estimate the stablecoin market is nearing $300 billion and could grow to $1 trillion or more.
Yet, the yuan’s offshore liquidity remains limited, and China’s capital controls and regulatory caution could hamper large-scale adoption. Some observers also highlight that Hong Kong’s stablecoin licensing regime provides the legal venue, but scaling AxCNH across broader corridors depends on convertibility and mainland policy shifts.
3. KRW1: Korea’s Digital Won Launch
3.1 Design and Launch
KRW1 is South Korea’s first stablecoin pegged to the Korean won on a 1:1 basis, launched by custody provider BDACS. The token is fully collateralized by reserves held in Woori Bank, and integrates real-time APIs for proof of reserves, aiming for transparency and regulatory alignment.
Deployment is currently in a proof-of-concept phase, initially operating on the Avalanche network, chosen for its performance, public sector credentials, and integration with financial APIs.
3.2 Use Cases and Future Prospects
BDACS envisions KRW1 being used not only for peer-to-peer payments and remittances, but also for investment, deposit services, and public-sector disbursements (e.g. emergency relief).
In parallel, South Korea’s financial regulator (FSC) is expected to finalize stablecoin regulations around October 2025, which could provide a clearer legal framework for KRW1’s broader rollout.
4. What These Launches Signal About Global Stablecoin Trends
4.1 From Dollar Dominance to Currency Pluralism
Until now, the stablecoin universe has been overwhelmingly dominated by U.S. dollar–backed assets like USDT and USDC. The emergence of yuan- and won-pegged stablecoins signals a potential multipolar turn in digital currency rails, especially across Asia.
This shift could enable regional value chains to conduct cross-border settlement in local currencies, reducing reliance on dollar corridors and lowering foreign exchange risk.
4.2 Regulatory & Infrastructure Arms Race
These launches reflect how governments are no longer passive observers: many are now actively shaping stablecoin regimes to ensure oversight, licensing, and integration into national financial systems.
Hong Kong’s newly established stablecoin licensing regime is a centerpiece for the Chinese experiment; it offers the legal shell for stablecoin issuance targeting cross-border users.
Similarly, in South Korea, regulatory developments, banking partnerships, and blockchain network selections (e.g. Avalanche) reflect a holistic approach to token design, infrastructure, and compliance.
4.3 Risks, Limitations & Skepticism
- Capital Controls & Convertibility: China’s tight capital management may limit the on-ramps and off-ramps for AxCNH in key markets.
- Liquidity Depth: Offshore yuan markets are still shallow compared to dollar markets, which could hinder trading scale and arbitrage.
- Regulatory Pushback: Geopolitical tension, cross-border compliance, and U.S. responses to non-dollar stablecoins might create friction.
- Adoption Curve: Businesses and individuals often resist switching rails; the stablecoins must prove reliability, low cost, and regulatory safety.
- Governance & Audit: Even fully backed stablecoins depend on robust attestation, audit mechanisms, and transparency to build trust.
5. Implications for Builders, Investors, and New Crypto Projects
For your readers — those hunting new crypto ideas, seeking yield, or exploring pragmatic blockchain use — these developments yield several actionable takeaways:
- New Liquidity Pools & Yield Opportunities: AxCNH/KRW1 may spawn fresh markets in FX pairs, staking, and liquidity provision, diverging from the USDT/USDC dominance.
- On-chain FX Rails for Real Assets: Projects around trade finance, cross-border supply chains, tokenization, and cross-currency swaps can integrate these rails to reduce friction.
- Bridging with RWA & Tokenization: Nationally backed stablecoins can be natural anchors or gateways between decentralized finance and traditional assets (bonds, real estate).
- Regulatory-Informed Design: For new tokens, attention to licensing regimes, reserve methodologies, and audit transparency is increasingly non-negotiable.
- Geographic Focus Strategies: Builders may target corridors where AxCNH or KRW1 adoption may accelerate (e.g. BRI countries, ASEAN nations, Korea’s export markets).
6. Summary & Outlook
The launches of AxCNH and KRW1 are more than incremental crypto events — they represent the opening salvo of a stablecoin arms race grounded in national strategy. As China and South Korea place their currencies on blockchain rails, they challenge the historical hegemony of U.S. dollar–based digital money.
While many uncertainties and hurdles remain — from capital controls to regulatory alignment and liquidity constraints — these stablecoins unveil a new frontier for how money, trade, and blockchain might interlock.
For technologists, investors, and decentralized finance innovators, the immediate horizon is rich with opportunities: novel FX products, settlement systems, tokenized yield structures, and regional rails built around real-world fiat. The next few years could show whether these experiments remain niche or become core infrastructure for a more pluralistic, blockchain-enabled financial order.
