HKDAP could take HKD beyond payments into on-chain finance, HashKey researcher says

HKDAP could move the Hong Kong dollar beyond payments and into cross-border settlement, corporate treasury management and tokenized finance as regulated stablecoins gain a role in Hong Kong's on-chain financial system, according to a HashKey researcher.
Summary

• HashKey senior researcher Tim Sun sees HKD stablecoins becoming an on-chain settlement vehicle rather than simply another payment method.
• Insurance has emerged as an early HKDAP use case, with HashKey and YF Life already completing a live transaction using real funds.
• Trade settlement, corporate treasury management and tokenized assets could provide additional uses as HKDAP's institutional network expands.
• Sun said HKD stablecoins could also prevent on-chain finance from depending solely on U.S. dollar stablecoins over the long run.

HashKey senior researcher Tim Sun told crypto.news that the future role of Hong Kong dollar stablecoins, including HKDAP, could extend well beyond payments as financial assets increasingly move onto blockchain networks.

"From our perspective, the role of HKD stablecoins (including HKDAP) in the future will be more than just a new payment tool; more importantly, they will serve as a digital vehicle for the Hong Kong Dollar to enter the on-chain financial system."

According to Sun, Asia's large cross-border capital flows, established financial system and growing use of asset tokenization create several possible applications for regulated HKD-denominated stablecoins. He identified cross-border settlement, corporate treasury management, and digital asset trading as areas where tokenized HKD could be used.

Tokenized financial assets could create another use case because their subscription, redemption, and settlement require a compatible form of money, Sun said.

"Looking further ahead, as more financial assets move on-chain, the market needs not only on-chain assets but also a matching on-chain settlement currency," he added.
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HKDAP insurance tests provide an early use case

Insurance has already provided one of the first institutional environments for testing the token.

On Aug. 14, HashKey Exchange said it had completed a live HKDAP transaction with YF Life Insurance International using real funds. The exercise covered the stablecoin's subscription and redemption process, while YF Life said it planned to support HKDAP premium payments in the future, subject to regulatory requirements.

Sun said the regulated nature of insurance makes it compatible with a stablecoin issued under formal regulatory oversight. Premium payments also offer a standardized and recurring transaction that institutions can use to test settlement infrastructure.

"The two announced cooperation cases indeed both have a background in insurance institutions," Sun said.

"On one hand, insurance is a highly regulated industry, which aligns well with the positioning of a regulated stablecoin. On the other hand, from a business perspective, premium payment itself is a relatively clear, standardized, and high-frequency real-world scenario."

HashKey has also partnered with insurer OneDegree to explore local and cross-border applications for HKDAP, adding another insurance-related test to the token's early institutional rollout.

The activity follows Anchorpoint Financial's controlled launch of HKDAP earlier in August. As previously reported, Anchorpoint appointed HashKey Exchange as an authorized distributor, allowing eligible institutions and professional investors to access minting, redemption, and fiat conversion during the beta phase.

HashKey had completed an initial minting and redemption transaction with eligible clients when the distribution arrangement was announced.

HKDAP use cases are extending into trade and treasury

Insurance is not the only financial activity being tested.

On Aug. 13, Unloq said its SC+ trade-finance infrastructure completed a Hong Kong transaction using HKDAP as the settlement instrument for a receivables-financing transaction. SC+ created a blockchain representation of the approved receivable, while HKDAP handled settlement within the workflow.

Sun said trade, corporate cross-border fund management, and tokenized assets are among the areas where stablecoins could provide additional utility.

"These fields inherently have strong demands for multi-currency, cross-timezone, and capital allocation capabilities, which better reflect the incremental value of stablecoins in on-chain settlement and cross-border fund management," he said.

Institutional distribution has also continued to expand since HKDAP entered beta access.

Standard Chartered Bank (Hong Kong) became HKDAP's first bank distributor on Aug. 24 and said it was working with eligible institutional clients on potential applications involving fund settlement, treasury management and cross-border trade payments.

Anchorpoint's records show further additions to the distribution network during the final week of August. Finloop became an authorized distributor on Aug. 25, followed by Yunfeng Financial on Aug. 26, while Bank of East Asia signed an agreement with Anchorpoint on Aug. 28 to explore applications for the HKD-backed token.

HKDAP remains under Hong Kong's regulated rollout

Despite the expanding list of institutional participants, HKDAP remains in a controlled rollout rather than unrestricted public distribution.

Anchorpoint began beta access on Aug. 12 for institutional distributors and professional investors, initially identifying cross-border payments, fiat conversion, and tokenized-asset settlement among its intended applications. The institutional rollout followed months of regulatory and technical preparation.

Before distribution began, Anchorpoint, OSL Group and Futu-backed PantherTrade tested HKDAP transfers on Ethereum mainnet in May. The Ethereum test covered the token's transaction process after Anchorpoint received regulatory approval.

HKDAP has a par value of HK$1 per token, according to Anchorpoint's whitepaper. Tokens in circulation must be supported by a reserve pool with a market value at least equal to the outstanding HKDAP, with the assets held in trust for token holders.

The regulatory foundation was established in April, when the Hong Kong Monetary Authority granted its first stablecoin issuer licenses to Anchorpoint and HSBC. The first licenses came under the Stablecoins Ordinance, which took effect in August 2025 and subjects covered issuers to requirements involving reserves, redemption, governance and risk controls.

Anchorpoint itself was formed by Standard Chartered Bank (Hong Kong), HKT and Animoca Brands after the companies participated in the HKMA's stablecoin issuer sandbox.

HKD stablecoins could offer an alternative settlement currency

For Sun, one of the longer-term questions is whether tokenized financial activity should remain overwhelmingly dependent on dollar-denominated stablecoins.

"The significance of the HKD stablecoin lies in enabling the HKD to participate in this new financial infrastructure system, preventing on-chain finance from relying solely on USD stablecoins in the long run."

The argument comes as the United States builds its own federal framework around payment stablecoins. President Donald Trump signed the GENIUS Act into law in July 2025, creating a federal regulatory structure for permitted payment stablecoin issuers.

U.S. regulators, however, missed the law's July 18, 2026 deadline for completing key implementing rules, leaving several proposals unfinished ahead of the framework's Jan. 18, 2027 effective date. U.S. rulemaking deadline

Treasury and other U.S. regulators have also proposed customer-identification requirements for certain permitted payment stablecoin issuers. Under the proposal, covered issuers would be treated as financial institutions for Bank Secrecy Act purposes and would need to verify customers in direct relationships, while secondary-market transactions generally would not trigger the same requirement.

Hong Kong's framework, meanwhile, has placed HKDAP under HKMA supervision from issuance. Anchorpoint's whitepaper states that the token is authorized for issuance in Hong Kong and may be distributed in other jurisdictions only in accordance with applicable local laws.
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