HashKey Leverages HKDAP Stablecoin for Cross-Border Trade in Middle East

HashKey Exchange, Hong Kong's largest cryptocurrency exchange, is tapping into the potential of cross-border trade in the Middle East by utilizing the HKDAP stablecoin. This move comes less than a week after the launch of the newly regulated stablecoin, which is pegged to the Hong Kong dollar. According to data, 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 plans to use HKDAP for settling cross-border trade transactions with the UAE and the broader Middle East. Additionally, the exchange will work with digital asset insurer OneDegree to use HKDAP for commercial insurance premium payments. This development highlights growing institutional interest in blockchain-based settlement.

The launch of HKDAP comes as stablecoins become increasingly important in global payments. The worldwide stablecoin market is worth around $310 billion, with U.S. dollar-pegged tokens dominating the 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.

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, with only two of 36 stablecoin license applicants receiving approval.