HashKey deploys HKDAP stablecoin for Hong Kong-UAE cross-border trade
In brief
- HashKey Exchange uses HKDAP to settle cross-border trade with UAE and Middle East
- HKDAP is Hong Kong's first regulated HKD stablecoin, issued by Anchorpoint Financial and backed by Standard Chartered, HKT, and Animoca Brands
- Hong Kong-UAE trade reached $48.95 billion in 2025; HKDAP launched Aug. 12 for institutional use with retail access targeted end-2026
Stablecoin moves beyond trials into live settlement
HashKey's deployment marks a shift from testing to production. The exchange previously tested HKDAP with insurer YF Life on Aug. 14 for life insurance premium payments. Now it's expanding: HashKey will use HKDAP for commercial insurance premium payouts alongside digital asset insurer OneDegree, while simultaneously processing trade deals across the Middle East.
This isn't theoretical. Cross-border trade transactions between Hong Kong and the UAE totaled $48.95 billion for all of 2025. Add another $24 billion to the rest of the Middle East. That's the addressable market HashKey is now entering with a regulated, institutional-grade settlement tool.
HKDAP is the first Hong Kong dollar-pegged stablecoin to go live under the city's regulatory framework. Its issuer, Anchorpoint Financial, is backed by Standard Chartered, HKT, and Animoca Brands—names that carry institutional weight in Asia's financial ecosystem. Anchorpoint began its limited rollout on Aug. 12, restricted to institutional users only. Retail access could come by the end of 2026.
Hong Kong's stablecoin strategy takes shape
The regulatory environment is tight. 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, narrowing the field further. HSBC holds the other issuance licence and is preparing to begin its first rollout later in the year.
The global context matters here. 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. A Hong Kong dollar alternative is a strategic bet on regionalization. Citigroup forecasts the stablecoin market could reach $1.9 trillion in a base case and $4 trillion in a bull case by 2030.
HKDAP's entry into trade settlement is the first concrete use case proving that thesis. It's not just about offering an alternative to USDT—it's about letting cross-border commerce in Asia settle in a currency tied to Hong Kong's peg, without the friction of traditional banking rails.
