HashKey Exchange plans to use Hong Kong dollar-pegged HKDAP stablecoin for UAE settlement, tapping a $48.95 billion trade corridor. Retail access could come by end of 2026.
Hong Kong's newly regulated stablecoin is already moving into real-world cross-border payments less than a week after its launch.
HashKey Exchange, Hong Kong's largest crypto exchange, plans to use the Hong Kong dollar-pegged HKDAP stablecoin to settle cross-border trade with the UAE and the Middle East. Hong Kong-UAE cross-border trade totaled $48.95 billion in 2025, according to TokenPost. Hong Kong recorded about $24 billion in trade with the rest of the Middle East in the same period.
HashKey will also work with digital asset insurer OneDegree to use HKDAP for commercial insurance premium payments. The exchange previously tested the stablecoin for life insurance premium payments with YF Life on Aug. 14, the report said.
HKDAP became the first Hong Kong dollar stablecoin launched under the city's regulated framework. Issuer Anchorpoint Financial, backed by standard Chartered, HKT and Animoca Brands, introduced HKDAP on Aug. 12 through a limited institutional rollout. Retail access could follow by the end of 2026.
The launch comes as stablecoins become an increasingly important part of global payments. The worldwide stablecoin market is worth roughly $310 billion, with U.S. dollar-pegged tokens dominating supply. Tether's USDT accounts for about 59% of the market at nearly $183 billion, while Circle's USDC represents approximately 23% with around $72 billion in circulation.
Growth expectations are also attracting governments and financial institutions. Citigroup estimates the stablecoin market could reach $1.9 trillion under its base-case scenario and as much as $4 trillion in a bullish scenario by 2030, TokenPost reported.
Hong Kong's regulated stablecoin regime could strengthen the city's position as a digital asset and cross-border settlement hub, particularly for trade linking Asia and the Middle East. Regulatory approval remains highly selective. Only two of 36 stablecoin license applicants received approval.
HSBC holds Hong Kong's other stablecoin issuance license and is preparing a rollout later in 2026 targeting its 3.3 million PayMe users.
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