AxCNH: the first licensed CNH stablecoin for 24/7 cross-border payments

AxCNH, stablecoin CNH with a 1:1 peg and the first to be released with an official license, debuted in Hong Kong. The token is designed to enable cross-border payments operational 24/7 on blockchain infrastructures, as highlighted in a statement from Reuters. The regulatory challenges and reserve requirements mentioned in the public debate are consistent with recent guidelines from authorities and international bodies, such as the Bulletin from the Bank for International Settlements on July 9, 2025, and the report on the topic from the United States Department of the Treasury on November 1, 2021, which emphasize risks related to the integration of stablecoins with the traditional financial system.

In briefings with market operators and treasury managers present at the Belt and Road Summit, a strong demand for instant settlement solutions in CNH emerged. According to data collected by independent analysts and on-site discussions, many counterparties require public proof‑of‑reserves and independent audits before integrating stablecoin denominated in local currencies into their payment flows. Industry analysts also note that interest in stablecoin linked to emerging currencies has grown alongside the increased need for intraday liquidity in global value chains.

What is AxCNH and why it matters

AxCNH is a token pegged to the offshore yuan (CNH) – distinct from the domestic yuan (CNY) subject to capital controls – and is presented by the issuer AnchorX, a fintech company, as the “first” licensed CNH stablecoin. In this context, the main focus remains on FX settlement and transactions related to international value chains, with specific attention to operational continuity.

• Token: AxCNH
• Issuer: AnchorX (fintech)
• Peg: 1 CNH = 1 AxCNH
• Backstop: reserves in cash and investment-grade government debt securities
• Intended use: FX and cross-border payments with 24/7 operations

Parallel Launch: KRW1 on BDACS

Almost simultaneously, the BDACS platform announced the launch of KRW1, a stablecoin pegged to the South Korean won. KRW1 also adopts an overcollateralization model, with a 1:1 peg and backing in fiat currency and government debt, aiming to offer instant settlement and lower transaction costs for cross-border operations. That said, its success will depend on the credibility of the reserves and the quality of the control procedures.

What does “overcollateralized” mean

In the overcollateralized model, reserves exceed the value of tokens in circulation. For example, for every 100 units issued, the custodian holds at least 102 units in liquid or near-liquid assets. This approach aims to offer a greater capacity to absorb shocks, although it involves a higher cost for immobilized capital, and requires high transparency from the custodians. Indeed, the balance between solidity and management burdens becomes crucial.

• Pro: higher confidence and better liquidity during market stress periods
• Cons: lower capital efficiency and reliance on the custodian’s transparency

24/7 Payments and Impact on Markets

The integration of CNH in 24/7 operational blockchains increases accessibility for businesses and financial operators, reducing friction in international settlement and potentially cutting costs and speeding up settlement times in global supply chains. It should be noted that greater availability of compliant instruments could favor high-frequency B2B use cases.

A possible side effect is the increase in demand for short-term government securities to support reserves, with potential impacts on yields. Leading USD issuers, such as Tether and Circle, already disclose their exposure to short-term US Treasury securities in their respective reserve reports.

Risks and Transparency

• Custody: the central issue is the reserve account manager and the guarantees offered
• Disclosure: the frequency and quality of independent audits or attestations are fundamental aspects
• Compliance: AML/CFT requirements, the Travel Rule, and necessary licenses for issuance and redemption are respected
• Peg risk: concerns liquidity management in case of high redemption requests
• Regulation: the challenge of coordination between different jurisdictions for cross-border use arises

State Motivations for Adopting Stablecoins

Governments and intermediaries see stablecoins as a means to extend the international circulation of currencies, reduce settlement costs, and make payments for foreign trade more efficient. For the CNH, regulatory-compliant digital instruments can accelerate internationalization while maintaining high standards of compliance and traceability. However, the governance of reserves remains a pillar to monitor.

The debate remains open on cohabitation with CBDCs (such as the e-CNY) and on controls over cross-border flows, where the push for adoption must be balanced with the need to ensure financial stability and manage systemic risks.

Implications for the markets

If AxCNH were to gain traction on FX platforms and B2B networks, it could increase the depth of the offshore CNH market, enable tokenized trade finance schemes, and reduce the use of third-party currencies in some settlement systems. This could generate new sources of funding in CNH, reducing reliance on traditional banking hours, although it may pose disintermediation risks for some operators. That said, the speed of adoption will depend on integration with existing infrastructures.

Essential Timeline

• September 17, 2025: public debut of AxCNH at the Belt and Road Summit in Hong Kong
• In parallel: announcement of the launch of KRW1 by BDACS in South Korea
• Next steps: publication of the proof-of-reserves, definition of details related to redemption and custody, and possible listings on regulated exchanges

How the Picture Changes with a Stable Regulated CNH

A stable regulated CNH allows payments to be traceable, standardizes controls, and reduces operational burdens for businesses and institutions. For the financial ecosystem, it is a testing ground for interoperability between traditional finance and on-chain infrastructures, with potential benefits in terms of efficiency and scalability.