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- HSBC launched its Hong Kong dollar stablecoin, RedCoin, via PayMe.
- More than 3.3 million users can soon activate stablecoin wallets.
- HSBC reports HK$80.6 million in RedCoin circulation as of launch.
HSBC launched its Hong Kong dollar stablecoin, RedCoin (RCHKD), through PayMe on Oct. 23, starting a phased rollout for transfers between users and payments to merchants.
The bank says more than 3.3 million PayMe users will be able to activate stablecoin wallets in the coming days. PayMe’s network covers more than 100,000 merchants.
PayMe Users Activate Wallets Inside the App
Customers activate a stablecoin wallet within PayMe before converting Hong Kong dollars into RedCoin. Users can redeem RedCoin one-for-one for Hong Kong dollars credited to their PayMe balance. HSBC aims to return the Hong Kong dollars immediately, or within one business day if processing takes longer.
Users can pay businesses that already accept PayMe using their RedCoin balance. They do not need to check separately whether a merchant accepts the stablecoin. Transfers to friends and family also take place within PayMe.
At launch, HSBC charges no fees for buying or redeeming RedCoin, sending it to another user or paying a merchant. Wallet access uses PayMe’s existing identity checks, alongside the bank’s eligibility requirements.
HSBC Operates RedCoin’s Blockchain and Custody
Before launch, HSBC tested token creation, wallet activation and transfers in staff pilots involving nearly 100 users. HSBC Digital Assets Custody provides safekeeping for RedCoin. HSBC manages the wallets and the private keys used to approve transfers, while individual customer balances are recorded in the bank’s internal ledger.
RedCoin runs on a private blockchain operated by HSBC. The bank controls the computers that validate transactions, and the current service is limited to Hong Kong.
HSBC Reports HK$80.6 Million in RedCoin Circulation
HSBC’s public dashboard lists HK$80.6 million in RedCoin circulation as of Oct. 23, against HK$81.6 million in reserve assets held in cash.
Each RedCoin is backed by Hong Kong dollar assets held in segregated accounts. HSBC plans to publish independent reports on the reserves’ value and composition, with the first expected after the fourth quarter of 2026.
The bank received its stablecoin issuer license from the Hong Kong Monetary Authority on April 10. HSBC and Anchorpoint Financial were the two entities licensed that day under Hong Kong’s Stablecoins Ordinance. HSBC’s license number is FRS02.
Banking App and Investment Features Come Later
Later this year, HSBC plans to add stablecoin wallets to its Hong Kong mobile banking app and let customers use RedCoin to subscribe to tokenized investments.
The planned products include a new share class of its existing Hong Kong dollar money market fund. RedCoin itself does not pay interest; the fund share class is a separate planned investment. John O’Neill, HSBC’s managing director for digital assets and currencies, said:
“[…] We will soon add more products, including expanding into wholesale corporate and institutional use cases.”
The banking-app wallet will be separate from the PayMe wallet. Customers will not be able to transfer RedCoin directly between the two, and each channel will have its own eligibility requirements.
