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 vehicl...