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HSBC launches RedCoin stablecoin on PayMe in Hong Kong

HSBC launched RedCoin on PayMe on 23 October, opening HKD stablecoin payments to more than 3.3 million users as wallets roll out over coming days.

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HSBC launches RedCoin stablecoin on PayMe in Hong Kong

HSBC launched RedCoin, its first Hong Kong dollar stablecoin, on PayMe on 23 October, starting a retail payments rollout for more than 3.3 million users. The bank said in its launch announcement that wallet activation will open over the coming days.

The coin’s ticker is RCHKD. HSBC says it is licensed and regulated by the Hong Kong Monetary Authority under the city’s Stablecoins Ordinance. The rollout puts an HKD stablecoin into an established payments app, where users can send money to friends and pay merchants.

What can PayMe users do with RedCoin?

Once they activate an in-app stablecoin wallet, users can make peer-to-peer transfers and pay more than 100,000 merchants through PayMe, HSBC says. The bank says the payments can be sent instantly.

That means RedCoin starts with everyday payments rather than investment purchases. The bank said its staff tested the customer journey with nearly 100 people, including minting, wallet activation and live transfers.

How far does the launch reach?

HSBC says more than 3.3 million PayMe users will be able to activate wallets, but the rollout is staged over several days. That figure describes the potential user base, not a claim that every PayMe customer has a wallet today.

The Block’s report on the launch also says the initial uses are peer-to-peer transfers and merchant payments. HSBC Digital Assets Custody will provide safekeeping for RedCoin, according to the bank.

For you, the practical change is access through PayMe: the bank says users can send RedCoin to friends and family and pay merchants directly in the app. The bank has not announced a separate date for when each user will be able to activate a wallet.

What comes after PayMe?

HSBC plans to add stablecoin wallet features 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 planned share class of its HKD money market fund.

Those features are future plans, not part of the PayMe launch announced on 23 October. HSBC also says it intends to expand into wholesale corporate and institutional uses. Watch for the next signal: when wallet activation reaches PayMe users and when the bank dates its planned app and investment features.

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