HKD Stablecoin Used in First Investment Case in Hong Kong

OSL Group has completed Hong Kong's first investment case using an HKD stablecoin, in partnership with Huaxia Fund (Hong Kong) and Standard Chartered Bank. The collaboration used HKDAP, a digital currency issued by Dingdian Financial Technology Co., Ltd., for the subscription and redemption of units in a digital currency market fund managed by Huaxia Fund.

HKDAP was used through a trading account opened at OSL HK, which provided support for subscription, trading, and settlement between HKDAP and the fund tokens. Standard Chartered Bank acted as custodian for both the tokens and the fund units, and also served as the tokenization agent in the transaction structure.

OSL Chief Executive Kevin Cui said that tokenized funds are a potential use case for regulated stablecoins, representing a convergence between traditional finance and digital assets. This development adds a new asset-management use case to Hong Kong's digital asset push, where regulated institutions have been testing how tokenized products can move through licensed exchanges, custodians, and banking partners.