HSBC has launched RedCoin, a Hong Kong dollar-backed stablecoin on PayMe, enabling digital transfers and payments at more than 100,000 merchants, with plans to expand into tokenised investments.
HSBC has launched HSBC RedCoin (RCHKD), its first Hong Kong dollar-denominated stablecoin, through its PayMe digital payments platform, expanding the use of regulated digital currencies for everyday transactions. The launch allows eligible customers to transfer digital currency to friends and family and make payments at more than 100,000 participating merchants across Hong Kong.
Licensed and regulated by the Hong Kong Monetary Authority (HKMA), RedCoin is designed to maintain a one-to-one value with the Hong Kong dollar. HSBC said the stablecoin is backed by high-quality, liquid assets held in segregated accounts, supporting redemption at the equivalent value of conventional Hong Kong dollars.
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Customers can activate a stablecoin wallet within the PayMe app to access the service. The rollout is being introduced to PayMe's more than 3.3 million users, with wallet activation becoming available progressively. The launch builds on HSBC's existing digital payments infrastructure, allowing customers to use the stablecoin without relying on a separate payment application.
The initial offering focuses on person-to-person transfers and payments to participating merchants. HSBC aims to make digital currency transactions more accessible by integrating stablecoin functionality into an established consumer platform. The bank's approach also reflects a broader effort to connect traditional banking services with blockchain-based financial infrastructure under regulatory oversight.
HSBC plans to expand RedCoin's availability later in 2026 by adding stablecoin wallet functionality to its Hong Kong mobile banking application. The bank also intends to allow customers to subscribe to tokenised investment products using RedCoin. Future developments could extend the stablecoin's use to wholesale corporate and institutional transactions, according to the bank.
The launch follows the HKMA's decision in April 2026 to grant stablecoin issuer licences to HSBC and Anchorpoint Financial, a joint venture involving Standard Chartered, Animoca Brands and Hong Kong Telecommunications. The licensing framework is part of Hong Kong's efforts to develop regulated digital asset markets while maintaining financial crime prevention and consumer protection standards.
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HSBC's introduction of RedCoin marks another step in the adoption of tokenised money by traditional financial institutions. By combining regulated issuance with existing payment channels, the bank aims to broaden access to digital transactions while exploring additional applications in investments and business payments.