HashKey Exchange will use HKDAP, the first regulated Hong Kong dollar stablecoin, to settle $48.95B in UAE trade and process insurance payouts.
Hong Kong's largest crypto exchange is putting the city's newest regulated stablecoin to work in cross-border trade and insurance.
HashKey Exchange will settle transactions with the United Arab Emirates and the wider Middle East using HKDAP, the first Hong Kong dollar-pegged stablecoin to go live under the city's rules. Total cross-border trade between Hong Kong and the UAE hit $48.95 billion in 2025, nearly double the $24 billion Hong Kong recorded with the rest of the Middle East, according to data cited by the exchange.
The exchange will also use HKDAP for commercial insurance premium payouts alongside digital asset insurer OneDegree, per a statement Monday. HashKey previously tested the stablecoin for life insurance payments with YF Life on Aug. 14.
HKDAP's issuer, Anchorpoint Financial, is a venture backed by Standard Chartered and HKT, with Animoca Brands also among its backers. The firm began a limited rollout for institutional use on Aug. 12. Retail access could come by the end of 2026.
Stablecoins are digital tokens tied to the value of a traditional financial asset, usually a fiat currency. Nearly all of the $310 billion global stablecoin market cap is pegged to the U.S. dollar. Tether's USDT alone holds roughly 59% of supply with a market cap of about $183 billion. Circle's USDC controls approximately 23% with nearly $72 billion in circulation. Citigroup forecasts the stablecoin market could reach $1.9 trillion in a base case and $4 trillion in a bull case by 2030.
A regulated Hong Kong dollar peg positions the city as an alternative settlement medium for cross-border trade, particularly across Asia and the Middle East. The bar for approval remains high: of 36 companies that applied for Hong Kong stablecoin licenses, only two received one. Beijing told Ant Group and JD.com to halt their Hong Kong stablecoin plans in October 2025.
HSBC holds the other Hong Kong stablecoin issuance licence. The banking giant is preparing to begin its first rollout later this year to its 3.3 million PayMe users.
The broader crypto market analysis suggests stablecoin adoption is accelerating as regulated products gain traction in trade and insurance.
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