Key Takeaways:
- China and South Korea launched new regulated stablecoins (AxCNH and KRW1) tied to the offshore yuan and Korean won, respectively, to bolster cross-border trade and economic influence.
- Both stablecoins are overcollateralized and aim to enhance the global utility of national currencies via blockchain-based settlements.
- Stablecoins are increasingly seen as tools for managing inflation and debt, with issuers like Tether playing major roles in global bond markets.
This week, China and South Korea launched new regulated stablecoins, signaling an intensifying global competition in digital fiat.
AnchorX debuted AxCNH, the first stablecoin pegged to the offshore Chinese yuan (CNH), during the Belt and Road Summit in Hong Kong.
AxCNH: World's First Licensed Offshore Chinese Yuan-Pegged Stablecoin Debuts at the 10th Belt and Road Summit https://t.co/ny34JMOmdu
— AnchorX (@AnchorX_Ltd) September 18, 2025
It is designed to facilitate cross-border payments with Belt and Road partner countries across Asia, the Middle East, and Europe.
Meanwhile, BDACS introduced KRW1, a won-backed stablecoin.
Both are structured as overcollateralized tokens, backed 1:1 by fiat reserves or government debt instruments held with custodians.
Governments view stablecoins as tools of monetary strategy, offering faster, 24/7 settlement beyond the constraints of traditional systems and currency controls.
By putting fiat on blockchain rails, nations aim to strengthen international demand for their currencies and create buffers against inflation.
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