✓ Verified by 4+ outlets
HSBC puts its RedCoin Hong Kong dollar stablecoin in the hands of 3.3 million PayMe users
Summary
HSBC has launched RedCoin (RCHKD), its first stablecoin, a Hong Kong dollar token available on its PayMe app from Friday, Oct. 23, The Block, Cointelegraph and CoinDesk reported.
PayMe's more than 3.3 million users can activate a stablecoin wallet in the app over the coming days to send money to friends and pay more than 100,000 merchants, according to the bank's announcement as reported by all three outlets.
HSBC and Anchorpoint Financial, a Standard Chartered-led venture with HKT and Animoca Brands, received Hong Kong's first stablecoin issuer licenses from the HKMA in April; Anchorpoint began an institution-focused rollout of its HKDAP token in August, The Block and Cointelegraph said.
HSBC plans to add a RedCoin wallet to its Hong Kong mobile banking app later this year so customers can subscribe to tokenized investments, including a new share class of its Hong Kong dollar money market fund, and to expand into wholesale corporate and institutional uses, per CoinDesk and Cointelegraph.
Updates
- Update, : Decrypt adds that about $10.2 million of RedCoin was circulating shortly after launch, backed by $10.4 million in cash per HSBC's reserve tracker, and that the token runs on HSBC's private ledger and isn't covered by Hong Kong's deposit insurance.
Key facts
- Cointelegraph said RedCoin is designed to be redeemable one-for-one for Hong Kong dollars, with HSBC Digital Assets Custody providing safekeeping.
- CoinDesk said HSBC has stated RedCoin will be fully backed by high-quality liquid assets held in separate accounts.
- "We will soon add more products, including expanding into wholesale corporate and institutional use cases," said John O'Neill, HSBC's managing director for digital assets and currencies.
- The Block noted HSBC is one of Hong Kong's three commercial banks authorized to issue HKD banknotes, and that Hong Kong's Stablecoins Ordinance took effect in August 2025.
- HSBC has also taken part in HKMA blockchain initiatives including the e-HKD pilot and Project Ensemble, The Block reported.
- Decrypt reported that HSBC's reserve tracker showed roughly $10.2 million in RedCoin circulating shortly after launch, backed by $10.4 million held entirely in cash.
- Decrypt said RedCoin runs on HSBC's own private ledger rather than a public blockchain, balances can't move between PayMe and HSBC's banking app, and as it isn't a bank deposit it isn't covered by Hong Kong's Deposit Protection Scheme.
- HSBC says the first independent attestation of RedCoin's reserves is expected after the fourth quarter of 2026, according to Decrypt.