October 03, 2025
By Anjali Kochhar
China appears to be easing its tough stance on digital assets as Conflux Network, one of its public blockchain operators, was granted permission to pilot offshore yuan stablecoins. This marks a notable development in the direction of China’s role in the global digital-asset space.
Conflux, which calls itself the only regulatory-compliant public blockchain project in mainland China, disclosed that authorities have given it a tacit “green light” to experiment with stablecoins pegged to offshore yuan. The company said it plans to issue up to 300 million yuan (about USD 42 million) in such tokens on its blockchain by the end of the year.
According to Conflux founder Fan Long, this is a major shift from prior restrictions. He remarked that opportunities like this were previously unavailable under China’s strict crypto policy. Now, with a window opening, Conflux intends not only to scale issuance but also to solve real operational challenges in stablecoin usage.
Stablecoins are digital tokens that maintain a fixed value, generally pegged to fiat currencies. While they are widely used in cryptocurrency trading, stablecoins are increasingly seen as useful tools for cross-border transactions, faster settlements, and lowering costs in financial flows. The increasing global regulatory focus on stablecoins, including new licensing frameworks in jurisdictions such as Hong Kong and the United States, is influencing broader acceptance and investment in the space.
The Conflux pilot also aligns with China’s ambitions to internationalize the yuan. Chinese experts have long advocated for offshore yuan-pegged stablecoins as a means to expand China’s influence in global settlement systems. Such vehicles could help China play a stronger role in global trade and cross-border payments.
Yet, the move is not without challenges or risks. Even with a tacit go-ahead, regulatory ambiguity remains. Conflux must closely navigate how national regulators interpret these new allowances. Moreover, deploying stablecoins in offshore jurisdictions introduces questions around compliance, custody, cross-border oversight, and counterparty risk.
But for now, Conflux sees a window of opportunity. The company aims to build momentum in stablecoin issuance this year. If successful, it could help demonstrate how China might cautiously embrace more flexible digital asset experimentation, while still preserving central control over core monetary tools.
This development could be a bellwether. If China continues easing restrictions, it may spur similar initiatives across Asia, signaling a new phase in the balance between sovereign control and digital currency innovation.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
