The joint venture's success in launching the AxHKD stablecoin is anticipated to be influenced by the regulatory landscape in Hong Kong. Notably, the Hong Kong Monetary Authority (HKMA) recently initiated a regulatory sandbox for stablecoin issuers, with the objective of supervising stablecoin issuers in the region and providing guidelines for firms, such as Conflux, seeking to issue fiat-pegged stablecoins.