HashKey Taps Hong Kong’s HKDAP Stablecoin for UAE Cross-Border Trade

Hong Kong’s newly regulated stablecoin is already moving into real-world cross-border payments less than a week after its launch.

HashKey Exchange, Hong Kong’s largest cryptocurrency exchange, plans to use the Hong Kong dollar-pegged HKDAP stablecoin to settle cross-border trade transactions with the UAE and the broader Middle East. The initiative could tap into a significant trade corridor: Hong Kong-UAE cross-border trade totaled $48.95 billion in 2025, while Hong Kong recorded about $24 billion in trade with the rest of the Middle East.

HashKey will also work with digital asset insurer OneDegree to use HKDAP for commercial insurance premium payments. The exchange previously tested the stablecoin for life insurance premium payments with YF Life on Aug. 14, highlighting growing institutional interest in blockchain-based settlement.

HKDAP became the first Hong Kong dollar stablecoin launched under the city’s regulated stablecoin framework. Issuer Anchorpoint Financial, backed by Standard Chartered, HKT and Animoca Brands, introduced HKDAP on Aug. 12 through a limited institutional rollout. Retail access could follow by the end of 2026.

The launch comes as stablecoins become an increasingly important part of global payments. The worldwide stablecoin market is worth roughly $310 billion, with U.S. dollar-pegged tokens dominating supply. Tether’s USDT accounts for about 59% of the market at nearly $183 billion, while Circle’s USDC represents approximately 23% with around $72 billion in circulation.

Growth expectations are also attracting governments and financial institutions. Citigroup estimates the stablecoin market could reach $1.9 trillion under its base-case scenario and as much as $4 trillion in a bullish scenario by 2030.

Hong Kong’s regulated stablecoin regime could strengthen the city’s position as a digital asset and cross-border settlement hub, particularly for trade linking Asia and the Middle East. Regulatory approval remains highly selective, however. Only two of 36 stablecoin license applicants received approval.

HSBC holds Hong Kong’s other stablecoin issuance license and is preparing a rollout later in 2026 targeting its 3.3 million PayMe users.