HSBC RedCoin Attracts 50,000 Users in Just Over a Week After PayMe Launch

HSBC’s Hong Kong dollar-backed stablecoin, RedCoin, has attracted 50,000 users in just over a week, marking an early milestone for the bank’s move into retail digital payments.

HSBC Group CEO Georges Elhedery shared the figure on November 2 during Hong Kong FinTech Week, which runs through November 6. He credited Hong Kong’s regulatory environment for supporting the launch and helping the bank introduce stablecoin payments to retail customers.

RedCoin launched on October 23 through PayMe, HSBC’s payment app. More than 3.3 million PayMe users can activate an in-app stablecoin wallet to send tokens to other users and make payments at over 100,000 merchants.

RedCoin brings stablecoin payments to PayMe users

RedCoin, which trades under the ticker RCHKD, is denominated in Hong Kong dollars and designed to be redeemable at a one-to-one rate. Rather than requiring customers to download a separate crypto wallet, HSBC has integrated the service into an existing payments platform.

The early adoption figure gives the bank a starting point for its retail stablecoin strategy. However, 50,000 users does not necessarily mean 50,000 active customers. HSBC has not yet disclosed transaction frequency or how many users have made payments using RedCoin.

The launch builds on HSBC’s broader digital asset strategy. As Altcoin Buzz reported when HSBC introduced RedCoin, the bank initially positioned the token around peer-to-peer transfers and merchant payments, with plans to expand into additional financial services.

Hong Kong limits stablecoin licenses to two issuers

Hong Kong’s regulatory framework is another important part of the launch. The Hong Kong Monetary Authority (HKMA) received 36 applications for stablecoin issuer licenses but approved only two in its initial licensing round.

HSBC and Anchorpoint Financial received the first two licenses in April 2026. The framework establishes requirements around reserve backing, redemption arrangements, and risk management.

The limited number of approvals reflects the regulator’s cautious approach to introducing stablecoins into the financial system. For HSBC, operating under this licensing framework provides a regulated route to offer digital payments to its existing customer base.

HSBC expands its AI and tokenization plans

HSBC also outlined broader technology investments during the event. The bank plans to establish a global AI and Emerging Technology Institute in Hong Kong, with operations expected to begin in early 2027. Its research will cover areas including AI security, fraud detection, and blockchain technology.

Separately, Hong Kong is advancing round-the-clock settlement through the HKMA’s Project EnsembleTX, which supports 24/7 real-value settlement of tokenized transactions. The regulator also plans to expand trials involving regulated stablecoins.

HSBC intends to extend RedCoin beyond PayMe, including plans to introduce wallet functionality through its Hong Kong mobile banking app and allow customers to subscribe to tokenized investment products.

The 50,000-user milestone gives RedCoin an encouraging start. Its longer-term success, however, will depend on whether customers move beyond wallet activation and use the stablecoin regularly for payments and financial services.