HashKey taps Hong Kong's first regulated stablecoin to settle insurance and trade deals
HashKey Exchange is utilizing the newly launched HKDAP stablecoin to settle cross-border trade transactions between Hong Kong and the Middle East. This move marks a significant step in Hong Kong's regulatory framework for digital assets, aiming to position the city as a hub for institutional stablecoin usage.
Why it matters
The adoption of a regulated, fiat-pegged stablecoin for large-scale trade settlement signals a shift toward institutionalizing digital assets in global finance.
HashKey Exchange, Hong Kong's largest cryptocurrency exchange, is set to settle cross-border trade transactions with the UAE and the wider Middle East region using HKDAP following the stablecoin's debut six days ago.
The total cross-border trade transactions between Hong Kong and the UAE were $48.95 billion for all of 2025, almost double the $24 billion Hong Kong recorded with the rest of the Middle East.
The exchange will also use HDKAP for commercial insurance premium payouts alongside digital asset insurer OneDegree, according to a statement on Monday . HashKey previously tested HKDAP for life insurance premium payments with insurer YF Life on Aug. 14.
HKDAP is the first Hong Kong dollar-pegged stablecoin to go live under the city's regulatory framework .
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