HKDAP Stablecoin Completes Live Transaction with YF Life Insurance
HashKey Exchange has successfully completed a live transaction using Hong Kong's first regulated Hong Kong dollar-backed stablecoin, HKDAP. The test was conducted with YF Life Insurance International Limited to explore a payment route that could reduce premium settlement time from two to three business days to near real-time.
The transaction used real funds for both subscription and redemption, meaning the process of acquiring and converting back covered the entire transaction cycle. This provides the basis for YF Life to introduce a regulated stablecoin payment option in the future.
Under the proposed customer process, policyholders could subscribe to HKDAP with Hong Kong dollars through HashKey Exchange or withdraw existing balances to make premium payments. Traditional premium payments can take two to three business days before settlement is confirmed, while an HKDAP transaction can provide near real-time crediting.
The test follows HashKey's entry into HKDAP distribution and marks the first insurance-related use case for the stablecoin, which entered its controlled rollout on August 12. Anchorpoint Financial issued HKDAP under a stablecoin issuer license from the Hong Kong Monetary Authority in April, alongside HSBC.