Table of Contents
- 1. Hong Kong Puts HKDAP to Work in Insurance Premiums and Trade Finance Settlement
- 2. Japan Brings Government Bond Repos Onchain and Tests Interbank Settlement
- 3. Korea Expands Overseas Distribution Channels Through Its Offshore Tokenized Securities Interpretation
- 4. Other News
- 4.1 Theme 1. Expansion of Stablecoin Distribution and Corporate Payments
- 4.2 Theme 2. Maintenance of Korea’s Regulated Infrastructure
- 4.3 Theme 3. Readjusting Taxation, Supervision, and Institutional Entry
Hong Kong’s first real payments with HKDAP lead this week’s ASA News, alongside Japan’s proof of concept for onchain government bond repos and Korea’s legal opening for offshore tokenized securities based on domestic assets.
1. Hong Kong Puts HKDAP to Work in Insurance Premiums and Trade Finance Settlement
Source: HKDAP Used for Insurance Premiums and Trade Finance Settlement
Key Update
- Anchorpoint began Phase 1 beta access for HKDAP, a regulated Hong Kong dollar stablecoin, on August 12, with access limited to institutional distributors, corporate users, and professional investors.
- HashKey processed an insurance premium payment using HKDAP with YF Life on August 14, and HashKey Exchange is working with OneDegree to prioritize commercial insurance premium payments and cross border payments in the Middle East.
- Anchorpoint explained that HKDAP combines onchain functions with internal controls that underwent external security review and independent assessment, so the full framework cannot be judged from public code alone.
- HSBC Hong Kong said preparations for commercializing a Hong Kong dollar stablecoin are proceeding as scheduled and that details will be disclosed in the near term.
Commentary: From Issuance Announcements to Validating Fund Flows
HKDAP’s first uses in insurance premiums and trade finance settlement show that Hong Kong treats stablecoins as part of an upgrade to the banking system. Limiting access to institutional participants prioritizes controllability over speed, and trust in the coin depends on reserves, redemption procedures, transaction monitoring, and partner screening working together with the code.
Actual usage still needs verification through transaction scale and repeatability. If HKDAP extends into recurring insurance premiums and corporate trade settlement, Hong Kong could become the first market in Asia to bring stablecoins into the operating layer of financial services.
2. Japan Brings Government Bond Repos Onchain and Tests Interbank Settlement
Key Update
- Four Japanese megabanks, including Mitsubishi UFJ Financial Group, began a proof of concept approved by the Financial Services Agency to process Japanese government bond repo transactions on blockchain.
- Government bond repos sit at the center of bank liquidity management, so the experiment targets collateral verification, ownership transfer, and settlement timing in interbank short term funding.
- On the other hand, JPYC marked one year since registering as a funds transfer service provider with total circulation reaching 2.8 billion yen, and AZ-COM Maruwa Holdings decided to introduce JPYC for payments to 2,300 companies.
Commentary: Japan’s Integrated Ledger Starts With Government Bonds
The experiment redesigns interbank settlement from its deepest point, since government bonds are the most trusted collateral in traditional finance and repos are the core channel for short term liquidity. When tokenized government bonds and digital cash tokens move on the same ledger, collateral movement and payment settlement can be processed without timing gaps.
Hong Kong is building commercial payment use cases first and Korea is widening the legal boundaries for tokenized securities, while Japan starts from wholesale finance. If the proof of concept leads to actual operations, Japan’s digital asset strategy will be defined by the restructuring of settlement infrastructure.
3. Korea Expands Overseas Distribution Channels Through Its Offshore Tokenized Securities Interpretation
Source: Domestic MMF-Based Offshore Tokenized Securities Unlikely to Violate Electronic Securities Act
Key Update
- The Financial Services Commission issued a legal interpretation that offshore tokenized securities based on domestic money market funds (MMFs) are difficult to view as violating the Electronic Securities Act because issuance takes place outside Korea.
- Shinhan Asset Management signed a four party memorandum of understanding with Solana Foundation, Etherfuse, and Orca to verify a won denominated tokenized fund aimed at overseas institutional investors.
- Korea is pushing for the launch of a new securities market in mid November while corporate account permissions, security token legislation, deposit token experiments, and strengthened virtual asset service provider rules move at the same time.
Commentary: The Triangle of Domestic Assets, Overseas Issuance, and Institutional Investors
The interpretation opens a path that connects won denominated short term assets with overseas institutional capital and gives Korean financial companies room to participate in overseas tokenization markets within the boundaries of domestic regulation. Settlement currency, redemption structure, custody, and investor eligibility remain the key design issues.
For this trend to benefit Korea over the long term, domestic payment assets and custody frameworks must develop together. If tokenized won assets circulate overseas while settlement depends on external stablecoins and overseas custody, the core of the value chain could move outside Korea.
4. Other News
This section summarizes other news from the period related to Asian stablecoins, tokenization, payments, and digital asset infrastructure.
4.1 Theme 1. Expansion of Stablecoin Distribution and Corporate Payments
4.1.1 Japanese Corporate Treasury Is the Next Target: Ripple APAC Head on RLUSD’s Japan Strategy
- RLUSD began being offered in Japan through a partnership with SBI Group, classified as a Type 4 electronic payment instrument and distributed through SBI VC Trade alongside JPYSC.
- AZ-COM Maruwa Holdings signed a capital and business alliance with JPYC Inc. and plans to use the yen pegged stablecoin for payments to 2,300 companies, securing corporate payment use cases ahead of individual payments.
- JPYC marked one year since registering under the Payment Services Act, with total circulation reaching 2.8 billion yen and Japanese stablecoins moving from the experimental stage to the operational stage.
4.1.4 “Even If Stablecoins Are Issued, 97% of Bank Deposits Will Remain”
- The Korea Economic Research Institute estimated that a 10% adoption rate for won stablecoins would reduce deposits at deposit taking institutions by 66 trillion won out of 2,650 trillion won, reframing outflow concerns in legislation discussions.
4.2 Theme 2. Maintenance of Korea’s Regulated Infrastructure
4.2.1 Pilot for 3,500 Corporations: Korea’s Virtual Assets Approach the Regulated Market Threshold
- The Financial Services Commission’s roadmap for phased permission of corporate virtual asset trading begins with a pilot for 3,500 corporations, shifting market attention toward custody, tokenization, and payment and settlement infrastructure.
4.2.2 Min Byung-dug: “We Will Make Sure the Digital Asset Basic Act Passes in the Second Half”
- Assemblyman Min Byung-dug pledged to pass the Digital Asset Basic Act in the second half to institutionalize won stablecoins, citing the rapid spread of dollar stablecoins.
4.2.3 Korea Financial Intelligence Unit Requests Data on Corporate Won Balances at Exchanges
- The FIU requested data on corporate won holdings from Upbit, Bithumb, Coinone, DigitalX, and GOPAX ahead of the expansion of corporate virtual asset trading.
- The Financial Supervisory Service built an in house surveillance system combining generative AI and machine learning to monitor trading across exchanges in real time ahead of institutional market expansion.
4.3 Theme 3. Readjusting Taxation, Supervision, and Institutional Entry
4.3.1 Laser Digital Registered as Japan Crypto Asset Exchange Operator No. 32
- Laser Digital Japan, a Nomura affiliate, completed registration as a crypto asset exchange operator supporting BTC, ETH, XRP, BCH, LTC, SHIB, and other assets.
4.3.2 Former Executive Yuan Premier Chen Chong Discusses Taiwan’s Special Virtual Asset Law
- Taiwan’s Virtual Asset Service Act passed its third reading on June 30 and was promulgated on July 22, with Chen Chong comparing stablecoins to national defense technology and calling for coordination between the Financial Supervisory Commission and the central bank.
4.3.3 Government: “Virtual Assets Held in Personal Wallets Are Also Subject to Taxation”
- The government stated that digital assets held in personal wallets and on overseas exchanges are taxed as other income, with a 2.5 million won deduction and a 20% tax rate.
4.3.4 Nexo Launches Crypto-Backed Credit Line in Australia
- Nexo Australia launched a digital asset backed credit line offering loans in AUD and stablecoins, expanding digital assets into underlying collateral for regulated credit.
[ASA News] is a weekly newsletter that summarizes major stablecoin related news across Asia and shares views from industry participants. (2026.08.17~08.23)
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