HKDAP Stablecoin Set to Facilitate Trade and Insurance Payments Between Hong Kong and UAE

HashKey, a Hong Kong-based digital asset exchange, is launching HKDAP, a Hong Kong dollar-pegged stablecoin, for trade and insurance payments between Hong Kong and the UAE. This marks a significant step in stablecoin adoption beyond trading, targeting real-world use cases in trade finance and insurance.

The move aims to reduce settlement times and costs compared to traditional banking channels. Trade volumes between Hong Kong and the UAE reached approximately $48.95 billion in 2025, with HKDAP potentially offering businesses a more efficient alternative to conventional cross-border payment systems.

HashKey also plans to use HKDAP for business insurance premium payments through OneDegree, a Hong Kong-based digital asset insurer. This application underscores the stablecoin's versatility in financial services beyond simple value transfer.