Kazakhstan Approves RMB Stablecoin AxCNH, Challenges Dollar

Published: 2025-08-18 06:23:42 |

Kazakhstan’s Astana Financial Services Authority (AFSA) has granted the first local license for AxCNH, an offshore RMB stablecoin issued by AnchorX and backed 1:1 by liquid CNH reserves. Deployable on Ethereum, BNB Chain and Conflux, AxCNH enables 24/7 cross-border settlement with AML/KYC compliance and cuts transaction costs by over 30% versus traditional bank transfers. The move marks a strategic milestone in China–Kazakhstan digital finance cooperation and boosts RMB stablecoin adoption in Central Asia, potentially reshaping cross-border payments and testing the resilience of dollar hegemony. AnchorX partner Hony Capital and Conflux network underpin the project with $16 billion in managed assets and compliant publicchain infrastructure. However, AxCNH faces regulatory scrutiny from G20 stability measures, Chinese onshore-offshore currency controls and reserve-ratio risks if CNH fluctuates. Competition from established USDT and USDC in the region adds another layer of market challenge. Traders should watch AxCNH’s liquidity rollout, regional exchange listings and evolving legal frameworks. Success could pave the way for digital RMB bridgehead, while setbacks might reinforce the dollar’s dominance in cross-border crypto settlements.

Bullish

The AFSA approval of AxCNH is likely bullish for the stablecoin sector and crypto markets focused on cross-border settlements. First, regulatory endorsement in a major Belt and Road hub underscores growing institutional acceptance of RMB stablecoins. Historical parallels include Tether’s licensing in Asia, which drove regional USDT volume and liquidity. Second, AxCNH’s multi-chain deployment and 30% lower transaction costs can attract traders and businesses seeking efficient settlement, boosting on-chain activity. Third, Hony Capital’s $16 billion backing and Conflux’s compliant infrastructure add credibility, reducing perceived counterparty risk. In the short term, expect increased trading pairs, higher stablecoin flows and positive sentiment for RMB-pegged tokens. Over the long term, successful adoption could diversify stablecoin markets, challenge USDT/USDC dominance and lay groundwork for digital RMB expansion. While regulatory uncertainties remain, the net impact favors bullish momentum for AxCNH and broader digital RMB initiatives.