HashKey, YF Life test HKDAP stablecoin for insurance payments

HashKey Exchange has completed a live transaction using Hong Kong's first regulated Hong Kong dollar-backed stablecoin, HKDAP, with YF Life, testing a payment route that the companies say could cut premium settlement from two to three business days to near real time.

Summary

• HashKey and YF Life completed a live HKDAP transaction using real funds.
• YF Life plans to explore HKDAP payments for insurance premiums.
• HKDAP payments could cut settlement from two to three business days to near real time.
• HashKey is an authorised distributor of the regulated Hong Kong dollar stablecoin.

HashKey Holdings said in a press release sent to crypto.news that its licensed trading platform used real funds to complete HKDAP subscription and redemption processes with YF Life Insurance International Limited, as the insurer prepares to explore stablecoin-based premium payments for customers.

The transaction puts HKDAP into an insurance-related use case only days after the stablecoin entered its controlled rollout. HashKey is an authorised distributor for HKDAP, which is issued by Anchorpoint Financial under a stablecoin issuer licence from the Hong Kong Monetary Authority.

YF Life plans to introduce HKDAP as a premium payment option subject to regulatory requirements and its implementation schedule, according to the release. The insurer said it expects to work with HashKey on the payment model and wants to become one of the first insurance companies in Hong Kong to accept the regulated stablecoin for premiums.

HKDAP test uses real funds for insurance payment setup

For the latest transaction, HashKey and YF Life tested the parts of the payment route needed before customers could use HKDAP for insurance premiums.

Real funds were used for both subscription and redemption, meaning the test covered the process of acquiring HKDAP and converting it back as part of the transaction cycle. HashKey said the work provides the basis for YF Life to introduce a regulated stablecoin payment option at a later stage.

Under the proposed customer process, policyholders could subscribe to HKDAP with Hong Kong dollars through HashKey Exchange. Customers who already hold the stablecoin could also withdraw HKDAP to a personal wallet and use it for premium payments.

Settlement time is one of the main areas being tested. According to HashKey, traditional premium payments can require two to three business days before settlement is confirmed, while an HKDAP transaction can provide what the company described as "near to real-time crediting."

YF Life has not provided a launch date for customer premium payments using HKDAP. Its plans remain subject to relevant regulatory requirements, while the current transaction serves as a live test of the payment setup.

The insurance use case follows HashKey's entry into HKDAP distribution this week. As crypto.news reported on Aug. 12, Anchorpoint appointed the licensed exchange as an authorised distributor during the token's beta stage, giving eligible institutions and professional investors access to minting, redemption and fiat conversion services.

HashKey had already completed an HKDAP minting and redemption transaction with eligible clients before working with YF Life. That earlier transaction covered conversions from fiat into HKDAP and back into fiat, testing how customers could enter and exit the stablecoin through the licensed platform.

HKDAP moves from controlled rollout into payment testing

Anchorpoint began the phased HKDAP rollout on Aug. 12, initially opening access through institutional distributors and to professional investors.

During the first stage, the issuer identified cross-border payments, fiat conversion, and settlement involving tokenized real-world assets as initial uses for the stablecoin. Authorised distributors provide the link between Anchorpoint and eligible customers that need to acquire or redeem HKDAP.

HKDAP stands for HKD At Par and is designed to maintain a one-to-one value with the Hong Kong dollar. Anchorpoint has said eligible, high-quality Hong Kong dollar assets will back the stablecoin in line with the requirements applied under the city's regulated stablecoin framework.

Access has initially been limited as Anchorpoint introduces the token through distributors and other use-case partners. Institutional and professional users can obtain HKDAP through participating channels, while the initial rollout has focused on testing transactions before access expands to additional users and applications.

The YF Life transaction adds insurance payments to the commercial applications now being tested. Under the structure described by HashKey, the exchange provides the regulated route through which customers can obtain HKDAP, while an insurer can receive the stablecoin as payment once the service is introduced.

HashKey said connecting the issuer, a licensed trading platform and an insurance institution allowed the parties to test how a regulated stablecoin could operate inside an existing financial service instead of limiting the exercise to token issuance and redemption.

Hong Kong stablecoin rules govern HKDAP issuance

Anchorpoint secured one of Hong Kong's first stablecoin issuer licences from the HKMA in April, alongside HSBC, clearing it to issue HKDAP under the Stablecoins Ordinance.

The April licensing approval followed the Stablecoins Ordinance taking effect on Aug. 1, 2025. Under the framework, regulated fiat-referenced stablecoins are subject to requirements covering reserve assets, redemption, asset segregation, governance and anti-money laundering controls.

Anchorpoint is backed by Standard Chartered Bank (Hong Kong), HKT and Animoca Brands. The issuer said after receiving its licence that HKDAP would be introduced in phases, with payments and settlement among the uses planned for the token.

Each HKDAP token is intended to be backed one-to-one by eligible Hong Kong dollar reserves held under the regulated structure. Anchorpoint has used a distribution model in which approved partners handle access to HKDAP instead of the issuer serving every potential customer directly.

HashKey's role under that setup covers distribution, trading, and related services. During the beta period, eligible institutions and professional investors can acquire the stablecoin through HashKey and supported channels, while Anchorpoint continues testing how HKDAP can be used across different transaction types.

HashKey plans more HKDAP payment use cases

Beyond insurance, HashKey said it plans to work with financial institutions and other industry partners on HKDAP applications involving corporate payments and cross-border trade.

The company identified those areas alongside insurance as potential uses where a regulated Hong Kong dollar stablecoin could be added to existing payment processes.

For YF Life, the next step described in the announcement is the planned introduction of an HKDAP premium payment solution once applicable regulatory requirements and its own roadmap allow it.

Customers would then be able to obtain HKDAP with Hong Kong dollars through HashKey Exchange or use an existing balance transferred to a personal wallet before making a premium payment, according to the companies.