HashKey taps Hong Kong's first regulated stablecoin to settle insurance and trade deals

Stablecoins are digital tokens tied to the value of a traditional fianancial asset, usually a fiat currency. Nearly all of the $310 billion global stablecoin market cap is pegged to the U.S. dollar. Tether's USDT alone holds roughly 59% of the supply with a market capitalization of just under $183 billion. Circle’s USDC controls approximately 23% with nearly $72 billion in circulation. 

Many countries and entities worldwide are rushing to roll out stablecoins of their own as they mull participation in an industry expected to grow sharply in the coming years. Citigroup forecasts the stablecoin market could reach $1.9 trillion in a base case and $4 trillion in a bull case by 2030.

A regulated Hong Kong dollar stablecoin positions the city as an alternative settlement currency for cross-border trade, particularly across Asia and the Middle East, notwithstanding a high barrier for regulatory approval.Of the 36 companies that applied for Hong Kong stablecoin licenses,only two received one. Beijing told Ant Group and JD.com to halt their Hong Kong stablecoin plans in October 2025.

HSBC holds the other Hong Kong stablecoin issuance licence. The banking giant is preparing to begin its first rollout later this year to its 3.3 million PayMe users.