HSBC launches RedCoin on PayMe for 3.3 million users

HSBC launched RedCoin, its first Hong Kong dollar stablecoin, on PayMe on 23 October, bringing in-app stablecoin payments within reach of more than 3.3 million users. HSBC says customers will be able to activate wallets in the coming days and use RedCoin for peer-to-peer transfers and payments at more than 100,000 merchants. The HSBC launch announcement identifies the token as RCHKD and says it is licensed and regulated by the Hong Kong Monetary Authority (HKMA).

The rollout gives RedCoin distribution through an existing payments app. HSBC Digital Assets Custody provides safekeeping for the stablecoin, according to the bank. Its announcement describes the payment functions, but does not identify RedCoin’s blockchain or say whether users can transfer it to wallets outside HSBC’s apps.

How will customers use RedCoin in PayMe?

Users will activate a stablecoin wallet inside PayMe, then send RedCoin to friends and family or pay participating merchants through the app. HSBC says the peer-to-peer function supports instant transfers and that the merchant network includes more than 100,000 businesses. The bank describes RedCoin as HKD-denominated; it does not publish details in the launch notice about transaction fees, transfer limits or redemption procedures.

The first phase is therefore defined by app access and payment use cases. The South China Morning Post’s launch report says users can activate a wallet without a minimum balance or additional account-opening requirements. PayMe users will still need to update the app, according to the report, and HSBC is phasing in access over the days after launch.

What does the HKMA licence cover?

HSBC’s Hong Kong subsidiary received a stablecoin issuer licence from the HKMA in April 2026, the bank says. RedCoin’s launch falls under Hong Kong’s Stablecoins Ordinance, which HSBC cites as the basis for its financial-crime controls. The licence establishes the regulated issuer framework; it does not, by itself, show how RedCoin transactions settle technically or establish that the token is interoperable with other payment networks.

The public launch followed staff pilots involving nearly 100 users. HSBC says those pilots tested the customer journey from minting and wallet activation through live transfers. The announcement does not name the underlying ledger, describe minting or redemption controls in detail, or state whether RedCoin can leave PayMe for an external wallet. Those details will determine how much of the token’s use extends beyond HSBC’s own products.

What is HSBC planning beyond PayMe?

HSBC plans to add RedCoin wallet functionality to its Hong Kong mobile banking app later this year. It also plans to let customers subscribe to tokenised investment products using RedCoin, including a new share class of the bank’s Hong Kong dollar money market fund. These are planned additions; the initial rollout announced on 23 October is focused on payments through PayMe.

HSBC also says it intends to expand into wholesale corporate and institutional use cases. For now, the reported launch establishes a retail route for holding and using RedCoin inside PayMe. The bank’s next additions will test whether it can connect that retail wallet to investment products and other banking channels while preserving the controls attached to its licensed stablecoin.

Sources and documents

• HSBC launch announcement — about.hsbc.com.hk
• South China Morning Post’s launch report — scmp.com