HKDAP: Hong Kong's First Regulated Digital Currency Pegged to the Hong Kong Dollar

Hong Kong is set to launch its first regulated digital currency pegged to the Hong Kong dollar, HKDAP. The stablecoin will be issued by Anchorpoint Financial Limited, a joint venture between Standard Chartered Bank (Hong Kong), HKT, and Animoca Brands.

The regulatory framework for stablecoins in Hong Kong was established with the granting of licenses to several issuers, including HSBC, which plans to set up its own HKD stablecoin. The new licensing system requires stablecoin issuers to back their tokens with high-quality reserve assets and establish arrangements for conversion into HKD at par.

The launch of HKDAP is expected to occur before the end of July 2026, providing an alternative to US dollar-pegged stablecoins like Tether (USDT) and USD Coin (USDC), which dominate the market. The introduction of a regulated HKD stablecoin is seen as a significant milestone for Hong Kong's pursuit of becoming a leading digital asset hub.

According to Eddie Yue, HKMA Chief Executive, 'The granting of stablecoin issuer licences is an important milestone for the development of digital assets in Hong Kong.' The regulator emphasizes that licensed stablecoins should be used in applications beyond trading cryptocurrencies, such as international payments and tokenization of financial services.