HSBC Launches RedCoin HKD Stablecoin for 3.3M PayMe Users

HSBC has put its first stablecoin in front of retail users. HSBC RedCoin, ticker RCHKD, a token denominated in Hong Kong dollars, "will be available from today on PayMe by HSBC," the bank said in its launch announcement on Friday 23 October.

For PayMe users the change is practical. HSBC says that "in the coming days, over 3.3 million PayMe users will be able to activate a stablecoin wallet in-app." Users can then send RedCoin to friends and family and pay with it at more than 100,000 merchants on PayMe. The bank has not given an exact activation date, so the token is live while the wallets are still rolling out.

A Licensed Bank Token, Not an Exchange Listing

RedCoin is "licensed and regulated by the Hong Kong Monetary Authority (HKMA)," HSBC said, under Hong Kong's Stablecoins Ordinance regime. The issuer is The Hongkong and Shanghai Banking Corporation, which received an HKMA stablecoin issuer licence in April 2026 under licence number FRS02.

HSBC Digital Assets Custody, the bank's own custody arm, safekeeps the token. Before launch, staff pilots with nearly 100 users "tested the full customer journey, from minting and wallet activation to live transfers," the bank said.

To get people using it, HSBC is offering PayMe transaction discounts and RewardCash, its rewards points, as launch promotions.

What HSBC Has Not Said Yet

Several details a stablecoin holder would normally check were not in the material available at launch:

• which blockchain RedCoin runs on, and its contract address
• how many tokens are in circulation
• what assets make up the reserves behind it

One outlet reports that HSBC designed RedCoin to be redeemable one for one with Hong Kong dollars. HSBC's own release does not state the redemption terms, so that point remains unconfirmed by the issuer.

The announcement also says nothing about trading RedCoin on crypto exchanges. As described, it lives inside HSBC's own apps.

Banking App Wallet and Tokenised Fund Come Next

PayMe is the first step. "Later this year, HSBC also plans to add stablecoin wallet functionality to the HSBC HK Mobile Banking App and to enable customers to subscribe to tokenised investment products via HSBC RedCoin," the bank said. Those products include a soon-to-launch share class of HSBC's long-running Hong Kong dollar money market fund. No date has been set for either.

John O'Neill, HSBC's managing director of digital assets and currencies, pointed further ahead: "We will soon add more products, including expanding into wholesale corporate and institutional use cases."

Maggie Ng, chief executive of HSBC Hong Kong, framed the launch as part of a larger shift: "Money, assets and information are moving from traditional infrastructure to always-on, data-rich and increasingly programmable digital networks."

HSBC's Track Record With Tokens

RedCoin is not the bank's first tokenised product. HSBC says its Gold Token had recorded 390,000 trades worth $2.5 billion by the end of August 2026, and its Orion platform has issued more than $8.3 billion in digital bonds.

The bank also points to its own customer research. In a June 2026 survey of 1,060 customers, 53% said Hong Kong dollar stablecoins could strengthen the city's economic competitiveness. A survey answer is not the same as daily use, though.

The real test starts when the PayMe wallets switch on. Whether 3.3 million eligible users become active RedCoin holders will show in how many activate the wallet, and that figure, along with the chain and reserve details, is what HSBC still has to publish.