FinanceHashKey Utilizes Hong Kong's First Regulated Stablecoin for Trade and Insurance Settlements
HKDAP, pegged to the Hong Kong dollar, aims to facilitate transactions in the $49 billion trade corridor with the UAE
By Olivier Acuna|Edited by Jamie Crawley58 min ago2 min readMake preferred on
HashKey Exchange, the largest cryptocurrency exchange in Hong Kong, is set to leverage HKDAP, the city’s inaugural regulated stablecoin pegged to the Hong Kong dollar, for settling cross-border trade transactions with the United Arab Emirates and the broader Middle East.
Launched just six days ago, HKDAP is expected to play a significant role in facilitating trade, given that cross-border trade between Hong Kong and the UAE reached $48.95 billion in 2025—nearly double the $24 billion with the rest of the Middle East.
In addition to trade, HashKey plans to utilize HKDAP for commercial insurance premium payments, collaborating with the digital asset insurer OneDegree. The exchange had previously conducted trials for life insurance premium payments using HKDAP with YF Life on August 14.
HKDAP is the first stablecoin to be launched under Hong Kong’s regulatory framework, issued by Anchorpoint Financial, a company backed by Standard Chartered, HKT, and Animoca Brands. The stablecoin's current use is limited to institutional users, with plans to extend access to retail customers by the end of 2026.
As the global stablecoin market, predominantly dominated by U.S. dollar-pegged tokens, is projected to expand significantly by 2030, the introduction of a regulated Hong Kong dollar stablecoin positions Hong Kong as a viable alternative for cross-border trade settlements in Asia and the Middle East. Notably, only two companies have received stablecoin issuance licenses in Hong Kong—Anchorpoint and HSBC—after a stringent regulatory approval process.
HSBC is set to launch its stablecoin issuance for its 3.3 million PayMe users later this year, further indicating the competitive landscape for digital currencies in the region.