HashKey Exchange plans to use HKDA, Hong Kong’s first Hong Kong dollar-pegged stablecoin launched under the city’s regulatory framework, for cross-border trade settlements and insurance payments.
The exchange will use the stablecoin for transactions involving the UAE and the wider Middle East, while also working with digital asset insurer OneDegree on commercial insurance premium payments. HKDA was launched for institutional users on August 12, marking an important step in Hong Kong’s push to develop regulated stablecoin infrastructure.
🤝 HashKey Exchange and OneDegree partner to drive local and cross-border use cases for HKDAP HKD Stablecoin.
As a major authorised distributor of the Hong Kong Dollar stablecoin HKDAP, HashKey Exchange has joined forces with OneDegree’s commercial insurance arm, OneInfinity, to… pic.twitter.com/K83brI4ItP
— HashKey Exchange (@HashKeyExchange) August 18, 2026
The planned trade settlement service is particularly notable because of the growing financial relationship between Hong Kong and the Middle East. Cross-border trade between Hong Kong and the UAE was worth $48.95 billion in 2025, according to the information provided.
HashKey previously tested HKDA for life insurance premium payments with YF Life on August 14. The latest plans would expand the use of the stablecoin into commercial insurance and international trade.
Source: hashkey.com
HKDA is issued by Anchorpoint Financial, a venture backed by Standard Chartered, HKT and Animoca Brands. The company began a limited institutional rollout on August 12. Retail access could follow by the end of 2026.
Stablecoins are digital tokens that are intended to keep their value steady, typically by being connected to a conventional currency like the US dollar or Hong Kong dollar. They are being investigated more and more as a quicker means of settling financial transactions and transferring money across borders.
Tokens based on US dollars continue to dominate the worldwide stablecoin market. While Circle’s USDC is another significant competitor, Tether’s USDT holds a sizable portion of the market.
Hong Kong’s move into regulated local-currency stablecoins could give the city another option for international settlements. A Hong Kong dollar stablecoin could be particularly useful for businesses dealing with Asian and Middle Eastern markets.
However, obtaining regulatory approval is not easy. According to the information provided, 36 companies applied for Hong Kong stablecoin licences, but only two received approval. HSBC holds the other licence and is preparing to launch its own stablecoin-related service later this year for users of its PayMe platform.
The development shows how stablecoins are moving beyond their traditional role in cryptocurrency trading. Financial institutions and businesses are increasingly looking at them as tools for payments, settlement and liquidity management.
For HashKey, using HKDA for trade and insurance payments could help demonstrate how a regulated stablecoin can work in real commercial transactions.
The use of a Hong Kong dollar-based token is also strategically important. Although governments and financial organizations in many countries are investigating local alternatives, the majority of the world’s stablecoin supply is still tied to the US dollar.
With estimates ranging from $1.9 trillion in a base-case scenario to $4 trillion in a more optimistic scenario, Citigroup has predicted that the global stablecoin market might rise considerably by 2030.
Stablecoins may play a significant role in international financial infrastructure if their use increases. Hong Kong is clearly looking to establish itself as one of the regulated markets at the centre of that development.
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