HashKey Exchange, Hong Kong's largest cryptocurrency exchange, has begun using HKDAP, the city's first regulated Hong Kong dollar-pegged stablecoin, for cross-border trade settlements with the UAE and broader Middle East region. According to reports from CoinDesk, the exchange will also utilize HKDAP for commercial insurance premium payouts alongside digital asset insurer OneDegree. This follows HashKey's previous testing of HKDAP for life insurance premium payments with insurer YF Life on August 14. The adoption represents a significant milestone as it marks the first time either of Hong Kong's two licensed stablecoin issuers has moved from regulatory approval to actual live transactions.
Anchorpoint Financial began phase-one Beta Access for HKDAP on August 12, initially limited to institutional distributors and professional investors. As reported by Blockhead, HashKey and OSL serve as Anchorpoint's first issuer-authorized distributors, with HashKey completing an initial client mint-and-redemption transaction covering both fiat on-ramps and off-ramps. OSL provides comprehensive support including distribution, liquidity, exchange, trading, and settlement services. Anchorpoint has disclosed no figures on circulation, distinct users, or sustained transaction volume, and wider retail access is expected by the end of 2026, subject to market conditions. The controlled rollout reflects Hong Kong's cautious regulatory approach, with the Hong Kong Monetary Authority choosing to build a parallel, tightly controlled track rather than opening the field to crypto-native issuers.
The adoption targets significant trade volumes, with total cross-border trade transactions between Hong Kong and the UAE reaching $48.95 billion in 2025, representing nearly double the $24 billion recorded with the rest of the Middle East. As reported by CoinDesk, this substantial trade corridor positions HKDAP to capture a portion of Hong Kong's strategic position in Asia-Middle East trade. The stablecoin is expected to serve as an alternative settlement hub for these cross-border transactions, though the real commercial test — attracting demand outside crypto-native trading use cases — actually begins when retail access becomes available later this year.
HKDAP is issued by Anchorpoint Financial, a joint venture of Standard Chartered Bank (Hong Kong), HKT, and Animoca Brands, which began the limited institutional rollout on August 12. According to CoinDesk, retail access is expected by the end of 2026. Hong Kong has granted only two stablecoin issuance licenses—one to Anchorpoint and one to HSBC—underscoring tight regulatory controls. The Hong Kong Monetary Authority received 36 applications for stablecoin issuer licenses and granted the first two on April 10, 2025, choosing two of only three institutions authorized to print physical Hong Kong dollar banknotes. Under Hong Kong's Stablecoins Ordinance, which took effect August 1, 2025, issuers must maintain reserve assets segregated from their own funds and equal to at least 100% of circulation.
The global stablecoin market currently stands at $310 billion, with nearly all supply pegged to the U.S. dollar. As reported by CoinDesk, Tether's USDT holds approximately 59% of the supply with a market capitalization of just under $183 billion, while Circle's USDC controls about 23% with nearly $72 billion in circulation. Citigroup forecasts the stablecoin market could reach $1.9 trillion in a base case and $4 trillion in a bull case by 2030, driving worldwide adoption of domestic stablecoins. The 18-month process from Standard Chartered, Animoca Brands, and HKT's joint venture announcement in February 2025 to the current Beta Access launch demonstrates the regulatory rigor behind Hong Kong's stablecoin framework.
