Summary
- HashKey Exchange will utilize newly introduced HKDAP, Hong Kong’s first regulated Hong Kong dollar-pegged stablecoin, to settle cross-border trade with the UAE and broader Middle East and to pay commercial insurance premiums.
- HKDAP, issued by Anchorpoint Financial and currently limited to institutional users, is expected to open to retail customers by the end of 2026, positioning Hong Kong as an alternative settlement hub in Asia–Middle East trade.
- Hong Kong has granted only two stablecoin issuance licenses—one to Anchorpoint and one to HSBC—underscoring tight regulatory controls as global stablecoin markets, still dominated by U.S. dollar-pegged tokens, are forecast to grow sharply by 2030.
Hong Kong’s newest regulated stablecoin is already being put to work.
HashKey Exchange, Hong Kong’s largest cryptocurrency exchange, is set to settle cross-border trade transactions with the UAE and the wider Middle East region using HKDAP following the stablecoin’s debut six days ago.
The total cross-border trade transactions between Hong Kong and the UAE were $48.95 billion for all of 2025, almost double the $24 billion Hong Kong recorded with the rest of the Middle East.
The exchange will also utilize HDKAP for commercial insurance premium payouts alongside digital asset insurer OneDegree, as reported by a statement on Monday. HashKey previously tested HKDAP for life insurance premium payments with insurer YF Life on Aug. 14.
HKDAP is the first Hong Kong dollar-pegged stablecoin to go live under the city’s regulatory framework.
HKDAP’s issuer Anchorpoint Financial, a venture backed by Standard Chartered, HKT and Animoca Brands, began a limited rollout of its stablecoin solely for institutional utilize on Aug. 12. Retail access could come by the end of 2026.
