HashKey will use HKDAP for institutional settlement with the UAE and Middle East, where Hong Kong trade hit $48.95 billion in 2025. Retail access may follow.
HashKey Exchange plans to use Hong Kong's new regulated stablecoin, HKDAP, for cross-border trade settlement with the UAE and the wider Middle East. The plan comes six days after HKDAP entered the market under Hong Kong's stablecoin rules.
The settlement plan will focus on institutional trade flows between Hong Kong and regional counterparties. The exchange also plans to use HKDAP for commercial insurance premium payouts with digital asset insurer OneDegree. HashKey tested the token for life insurance premium payments with YF Life on Aug. 14.
Hong Kong recorded $48.95 billion in cross-border trade with the UAE during 2025. Trade with the rest of the Middle East reached about $24 billion over the same period. That put the UAE at roughly two-thirds of Hong Kong's Middle East trade. HKDAP gives institutions a Hong Kong dollar-based option for settling some of those transactions.
Anchorpoint Financial, backed by Standard Chartered, HKT and Animoca Brands, issued the stablecoin on Aug. 12. HKDAP launched through a limited institutional channel, and retail users may gain access by the end of 2026, depending on the issuer's rollout plans and regulatory requirements.
The global stablecoin market stands near $310 billion. Most tokens are linked to the U.S. dollar. Tether's USDT holds about 59% of supply, worth about $183 billion. Circle's USDC accounts for about 23% of supply, worth nearly $72 billion. Citigroup expects the stablecoin market to reach $1.9 trillion in its base case and $4 trillion in its bull case by 2030.
HKDAP is the first Hong Kong dollar-pegged stablecoin launched under the city's regulatory framework. The licensing process drew applications from 36 companies and produced only two approved issuers. Beijing told Ant Group and JD.com to stop their Hong Kong stablecoin plans in October 2025. Both had stablecoin plans at the time.
HSBC holds the other issuance licence and plans a rollout later this year for its 3.3 million PayMe users.
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