09-24-2025 
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Hong Kong-based digital asset firm AnchorX has launched the first offshore stablecoin pegged to the Chinese yuan as the global race heats up. In South Korea, a local digital asset custodian has launched the first won-pegged stablecoin to challenge the dominance of United States dollar rivals in the $306 billion market.
While Asian countries launch their local alternatives, European peers are focusing on regulations. Most recently, the Bank of Italy warned that issuing multiple stablecoins in different jurisdictions significantly risks the European Union’s financial system and wants stricter limits for issuers.
First yuan, won stablecoins launch
AnchorX announced the launch of the AxCNH stablecoin at the 10th Belt and Road Summit in Hong Kong, touting it as the first stablecoin pegged to the offshore Chinese yuan.
The company is targeting cross-border settlements between China and over 150 countries as part of its Belt and Road Initiative (BRI), spanning Asia, Africa, South America, and Oceania. In 2024, China’s trade volume with countries under BRI hit RMB 22.1 trillion ($3.2 trillion).
AnchorX is courting Chinese firms with significant offshore presence to tap the stablecoin for cross-border settlements. It has signed a partnership with Zoomlion, one of the largest manufacturers of construction and agricultural machinery. The company recorded $3.3 billion in offshore revenue last year and intends to transition to AxCNH for cross-border settlement.
AxCNH will be accessible on centralized exchanges, with AnchorX securing a listing agreement with ATAIX Eurasia, a licensed exchange in Kazakhstan. However, access will initially be restricted to professional investors.
AxCNH marks the beginning of a new era in China’s digital currency landscape as the Asian country continues to warm up to stablecoins. In June, the central bank governor, Pan Gongsheng, noted that stablecoins could shape China’s financial future alongside a digital yuan.
Regulatory developments in Hong Kong, which welcomed the world’s first Act dedicated to stablecoins in August, have spurred Chinese firms into action, with giants like Ant International and JD.com (NASDAQ: JD) pursuing a license in the city-state.
While the yuan-pegged stablecoins target a vast unexploited global market, they also serve as China’s response to the domination of USD-pegged stablecoins. Some reports say the greenback accounts for 99% of all stablecoin activity.
According to Zongyuan Liu, a fellow at the Washington-based Council on Foreign Relations, concerns are mounting in Beijing that stablecoins could further cement the USD’s position in global finance.
“For China, dollar-backed stablecoins are more than an economic challenge — they are also a political threat,” she stated.
Elsewhere, South Korean digital asset custodian BDACS has launched KRW1, the first won-backed stablecoin “to integrate all key infrastructure for issuance and circulation — including the blockchain network, custody framework, and banking backend.”According to Busan-based BDACS, KRW1 will be backed 1:1 by Korean won deposits held at Woori Bank, one of the country’s largest lenders. The company is also exploring interoperability with USDT and USDC ecosystems to boost global liquidity.
Italy stablecoin warning
While China and South Korea received new stablecoins, Italy is focusing on oversight, warning against multi-issuance stablecoins and regulatory fragmentation.
Addressing the 14th Annual Conference on Economics of Payments in Rome, Bank of Italy’s Deputy Governor Chiarra Scotti acknowledged that stablecoins are becoming a significant player in global finance.
However, she says that usage is still limited to the digital asset space, claiming that 90% of the volume was related to ‘crypto’ use cases last year. Additionally, they carry inherent vulnerabilities such as interconnectedness and risk of bank runs. They are also popular with criminals for fraud, money laundering and sanctions evasion, she added.
One of the key risks for the EU is multi-issuance stablecoins, which are issued by multiple companies under a single brand, Scotti told the attendees. While this model enhances liquidity, it comes with significant risks for the EU financial system.
EU-based issuers could be forced to redeem stablecoins issued in other jurisdictions, even when they hold a small fraction of their reserve assets. This mismatch of obligations and reserves is exacerbated by the differences in regulations across jurisdictions.
“To mitigate these risks and avoid regulatory blind spots, issuance should be limited to jurisdictions that uphold equivalent regulatory standards, ensure redemption at par, and enforce cross-jurisdiction crisis protocols,” she stated.
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