Asia’s Stablecoin Race Heats Up with AxCNH and KRW1 Launches

Last week, AnchorX unveiled AxCNH, the first regulated stablecoin tied to the offshore Chinese yuan (CNH), at the 10th Belt and Road Summit in Hong Kong. BDACS also launched KRW1, showing how quickly nations are embracing this new class of digital assets.

AnchorX Unveils CNH Stablecoin for Global Trade

AnchorX, a financial technology company and the first to receive a stablecoin licence from Kazakhstan’s Astana Financial Services Authority, has created a digital token pegged to CNH. 

The company designed the coin to simplify cross-border transactions and settlements for Chinese businesses operating internationally, while also positioning AxCNH to support payments in regions connected to the Belt and Road Initiative. This launch follows China’s regulatory shift that now allows stablecoins for international use .

BDACS Launches KRW1 Stablecoin on Avalanche

In the same week, BDACS introduced KRW1, a stablecoin backed by the South Korean won. The organisation had completed a proof of concept, which confirmed the token’s technical feasibility before release.

KRW1 was first issued on the Avalanche blockchain , a network recognised by Korea’s Internet & Security Agency (KISA) for its reliability and security in public-sector applications. By selecting Avalanche, BDACS anchored its stablecoin to infrastructure validated by national authorities for secure and efficient operation.

The token represents a blockchain-based version of the South Korean won and reflects the country’s ongoing exploration of digital settlement solutions. KRW1, like AxCNH, is also overcollateralised. 

Each token is backed 1:1 by cash or government securities held by an independent custodian, ensuring the reserves remain separate from the issuing company.

Governments Embrace Stablecoins as Market Expands

The introduction of AxCNH and KRW1 comes amid growing interest in stablecoins. 

Governments are updating regulations to accommodate this emerging asset class, and regulators are exploring how these digital tokens could support the digitisation of national currencies, broaden their international use, and help manage inflationary pressures from money printing.

This growing attention is reflected in market forecasts. Analysts anticipate significant expansion, with some projections suggesting the stablecoin market could reach $2 trillion by 2028. JPMorgan offers a more cautious estimate, expecting growth to be between $500 and $750 billion , roughly two to three times its current size.

Digital Tokens Offer Efficient International Settlements

Stablecoins maintain a stable value and can be stored in digital wallets and transferred via blockchain networks, allowing near-instant transactions across borders. This capability makes them particularly useful for international trade and settlements.

Compared with traditional financial systems, which can be slowed by infrastructure limitations and currency controls, stablecoins provide a faster and more accessible way to transfer funds internationally. Operating around the clock, they reduce the time and cost of cross-border payments while maintaining value through backing by cash or government securities.

With AxCNH and KRW1, AnchorX and BDACS are applying this model to the offshore Chinese yuan and the South Korean won, aiming to expand the international use of their currencies and offer more efficient payment solutions for global trade.