HashKey taps Hong Kong’s first regulated stablecoin to settle insurance and trade deals

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 use HDKAP for commercial insurance premium payouts alongside digital asset insurer OneDegree, according to 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 use on Aug. 12. Retail access could come by the end of 2026.

Stablecoins are digital tokens tied to the value of a traditional fianancial 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 the supply with a market capitalization of just under $183 billion. Circle’s USDC controls approximately 23% with nearly $72 billion in circulation. 

Many countries and entities worldwide are rushing to roll out stablecoins of their own as they mull participation in an industry expected to grow sharply in the coming years. 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 stablecoin positions the city as an alternative settlement currency for cross-border trade, particularly across Asia and the Middle East, notwithstanding a high barrier for regulatory approval.Of the 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.