Conflux Network, a Layer 1 blockchain project based in China, is working with fintech firm AnchorX to launch a Hong Kong dollar-backed stablecoin as soon as the second quarter of this year.

Fan Long, founder and chief executive of Conflux, told The Block in an interview that the AnchorX team is hoping to launch its “AxHKD” stablecoin as soon as possible.

“We hope they could push it as soon as possible,” Long said. “If it’s going fast, maybe in Q2, people will be able to get them from exchanges — that’s the fastest possibility. But a lot of things are determined by how fast the regulatory sandbox is pushing forward.”

Earlier this month, Conflux and AnchorX announced the beta-testing of AxHKD, designed to maintain a 1:1 peg with the Hong Kong dollar, “backed by high-quality liquid asset …