HSBC brings RedCoin stablecoin to PayMe users in Hong Kong

HSBC launched its first Hong Kong dollar stablecoin, RedCoin, on PayMe on 23 October, bringing token payments to a large retail app. The bank says more than 3.3 million PayMe users will be able to activate a RedCoin wallet. Its launch announcement says the token will support transfers to friends and payments at merchants.

A stablecoin is a digital token designed to keep its value tied to a currency. HSBC’s RedCoin is denominated in Hong Kong dollars and trades under the ticker RCHKD. The bank says the Hong Kong Monetary Authority (HKMA) licensed and regulates it. The Block reported on the launch as the bank’s first move into retail stablecoin payments.

What can PayMe users do with RedCoin?

Users can send RedCoin to friends and family, or pay merchants through PayMe. HSBC says wallet activation will roll out in the days after launch, so the figure of more than 3.3 million refers to the app’s potential user base, not confirmed wallet holders. The bank lists more than 100,000 merchants where customers can pay with RedCoin.

The wallet sits inside PayMe, an existing payment app. HSBC says its design responds to customer interest in access through familiar apps and faster payments. Before launch, the bank says nearly 100 staff tested the process, from creating tokens to activating wallets and making transfers.

What rules apply to the stablecoin?

RedCoin operates under an HKMA stablecoin issuer licence, which HSBC says it received in April 2026. Hong Kong’s Stablecoins Ordinance sets rules for licensed issuers, including financial crime controls. HSBC’s announcement identifies the issuer licence as FRS02.

The launch makes RedCoin available through a regulated banking product. It does not mean every PayMe customer has activated a wallet, or that the token is already available through other apps. HSBC says its digital assets custody service safeguards RedCoin, but its launch announcement does not give a breakdown of the assets backing the token.

What does HSBC plan to add next?

HSBC plans to add RedCoin wallet features to its Hong Kong mobile banking app later this year. It also plans to let customers use RedCoin to subscribe to tokenised investments, or digital representations of investment products. The bank says these will include a planned share class of its Hong Kong dollar money market fund.

HSBC also says it intends to expand RedCoin for corporate and institutional use. It has not announced a launch date for those services. For now, the announced retail uses are PayMe transfers and merchant payments.

Sources

• launch announcement — about.hsbc.com.hk
• reported on the launch — theblock.co