HSBC launches RedCoin stablecoin on PayMe in Hong Kong

HSBC has launched its first stablecoin, HSBC RedCoin, on PayMe in Hong Kong. The HKD-denominated token is regulated by the Hong Kong Monetary Authority.

More than 3.3 million PayMe users will be able to activate a stablecoin wallet in the app in the coming days and use the token for payments between individuals and at merchants.

RedCoin, which will carry the ticker RCHKD, will be available for peer-to-peer transfers and payments at more than 100,000 merchants through PayMe. HSBC said the stablecoin meets the financial crime control standards required under Hong Kong's Stablecoins Ordinance.

The launch brings stablecoins into a mainstream retail payments product at one of the city's largest banks, as Hong Kong pushes ahead with a regulated framework for digital assets. HSBC received a stablecoin issuer licence from the Hong Kong Monetary Authority in April.

A survey commissioned by HSBC found that access through existing apps, along with faster payments and settlement, were among the strongest factors influencing adoption. It said 53 per cent of respondents believed HKD stablecoins could improve economic competitiveness by supporting round-the-clock payments and commerce linked to trade, tourism and cross-border activity.

Retail payments

The launch marks HSBC's first stablecoin for day-to-day consumer use. It recently ran staff pilots with nearly 100 users, testing the process from minting and wallet activation to live transfers.

HSBC is also preparing to add the stablecoin wallet to its HSBC HK Mobile Banking App later this year. It plans to let customers subscribe to tokenised investment products using RedCoin, including a new share class of its Hong Kong dollar money market fund.

"Money, assets and information are moving from traditional infrastructure to always-on, data-rich and increasingly programmable digital networks. We have an opportunity to help customers in Hong Kong manage this shift with practical products and services that support the real economy, backed by the trust and security of a global bank," said Maggie Ng, Chief Executive Officer, Hong Kong, and Head of Retail Banking and Wealth, Hong Kong, HSBC.

Digital asset push

The stablecoin launch adds to HSBC's broader digital asset programme in Hong Kong. The bank has taken part in several Hong Kong Monetary Authority initiatives since 2022, including the e-HKD+ Pilot Programme and Project Ensemble.

Its existing products in the city include digital bonds issued through HSBC Orion, the HSBC Gold Token for retail customers, and a tokenised deposit service for wholesale payments. Since its launch in 2023, HSBC Orion has supported the issuance of more than USD $8.3 billion in digitally native bonds globally, according to the bank.

HSBC said its Gold Token has recorded 390,000 trades since its debut in 2024, with a total traded value of USD $2.5 billion by the end of August 2026.

John O'Neill, Managing Director, Digital Assets and Currencies, HSBC, said: "We are excited by the market's interest in HSBC RedCoin. This is only the beginning. We will soon add more products, including expanding into wholesale corporate and institutional use cases. This is a big step forward for safe and widely available digital assets and currencies in Hong Kong."

HSBC Digital Assets Custody will provide safekeeping services for RedCoin.