HashKey Pushes HKDAP Into Cross-Border Payments

TLDR

• HashKey Exchange plans to use HKDAP for cross-border trade settlements with the UAE and the wider Middle East.
• HKDAP launched on August 12 and became Hong Kong’s first regulated Hong Kong dollar-pegged stablecoin.
• HashKey will also use HKDAP for commercial insurance premium payouts with digital asset insurer OneDegree.
• Hong Kong-UAE cross-border trade reached $48.95 billion in 2025, creating a large potential settlement market.
• Anchorpoint Financial launched HKDAP for institutional users, while retail access may follow by the end of 2026.

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 move 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 August 14.

HashKey Targets Cross-Border Trade Settlement

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.

HKDAP gives institutions a Hong Kong dollar-based option for settling some transactions. Anchorpoint Financial, backed by Standard Chartered, HKT and Animoca Brands, issued the stablecoin on August 12.

Anchorpoint launched HKDAP through a limited institutional rollout. Retail users may gain access by the end of 2026, depending on the issuer’s rollout plans and regulatory requirements.

HKDAP is the first Hong Kong dollar-pegged stablecoin launched under the city’s regulatory framework. Hong Kong approved only two stablecoin issuers after receiving applications from 36 companies.

Stablecoin Market Remains Dollar-Dominated

The global stablecoin market stands near $310 billion, with most tokens linked to the U.S. dollar. Tether’s USDT holds about 59% of supply, with a market value near $183 billion.

Circle’s USDC accounts for about 23%, with nearly $72 billion in circulation. Citigroup expects the stablecoin market to reach $1.9 trillion in its base case and $4 trillion in its bull case by 2030.

A Hong Kong dollar stablecoin gives regulated institutions another settlement tool for trade across Asia and the Middle East. Approval remains limited under the city’s licensing system.

Beijing told Ant Group and JD.com to stop their Hong Kong stablecoin plans in October 2025. HSBC holds the other issuance licence and plans a rollout later this year for its 3.3 million PayMe users.

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