First Regulated HKD Stablecoin HKDAP: HashKey to Use It in Trade and Insurance in 6 Days

Hong Kong’s first regulated HKD-backed stablecoin, HKDAP, is preparing for real-world application following HashKey’s new plan for trade and insurance payments after its limited institutional launch on August 12.

Hong Kong’s largest cryptocurrency exchange, HashKey Exchange, announced that it will use HKDAP for settling cross-border trade transactions with the United Arab Emirates (UAE) and the Middle East. While the trade volume between Hong Kong and the UAE is expected to reach $48.95 billion in 2025, this figure is nearly double Hong Kong’s $24 billion trade with the rest of the region.

The exchange will also use HKDAP for commercial insurance premium payments in collaboration with digital asset insurer OneDegree. On August 14, HashKey also conducted a test for paying life insurance premiums with the insurance company YF Life.

Only Two Licenses Issued for Stablecoins

HKDAP, which is pegged to the Hong Kong dollar, became the first regulated HKD stablecoin to enter use under Hong Kong’s regulatory framework. The stablecoin’s issuer, Anchorpoint Financial, is supported by Standard Chartered, HKT, and Animoca Brands.

While 36 companies applied for a stablecoin license in Hong Kong, only two were approved. The other license holder, HSBC, is preparing to launch its own stablecoin to 3.3 million PayMe users later this year.

HKDAP is currently only available for institutional use. Anchorpoint Financial states that access for retail users may be possible toward the end of 2026.