HSBC launches RedCoin for PayMe users in Hong Kong

As Hong Kong’s stablecoin licensing regime moves into retail payments, HSBC launched its first HKD stablecoin, RedCoin (RCHKD), on PayMe on 23 October. HSBC’s launch announcement says more than 3.3 million PayMe users will be able to activate an in-app wallet in the coming days.

The rollout puts a bank-issued, HKMA-licensed stablecoin into a large consumer payments app, linking regulated digital-asset issuance with everyday transfers and purchases.

How can PayMe users use RedCoin?

RedCoin’s first uses are peer-to-peer transfers and peer-to-merchant payments through PayMe, HSBC said. The bank says customers will be able to send it to friends and family and pay at more than 100,000 merchants on the platform. The phased wallet activation means the service is being made available over several days, rather than to every PayMe user at once.

Users can activate a wallet in the app to make transfers, according to the South China Morning Post’s report on the rollout, which cited PayMe head Lawrence Li. Li said users would not need to maintain a minimum balance or open an additional account. The first phase is focused on P2P and merchant payments; HSBC has not announced broader availability beyond its own platforms.

What backs the HKD stablecoin?

HSBC says RedCoin is issued under its HKMA stablecoin issuer licence, number FRS02, and is fully backed by high-quality, highly liquid assets held in segregated reserves. The bank says the token is redeemable one-for-one for Hong Kong dollars, subject to its terms. Its reserve dashboard, updated 24 October, listed HK$80.67 million in circulation against reserve assets valued at HK$81.67 million, all in cash.

The figures offer an initial view of the launch’s scale and backing, while HSBC says it will publish regular independent attestations of reserve assets. The first such report is expected after the fourth quarter of 2026. HSBC’s announcement also says a staff pilot involving nearly 100 users tested the customer journey from minting and wallet activation through live transfers.

What is HSBC planning after the PayMe launch?

Later in 2026, HSBC plans to add RedCoin wallet functionality to its Hong Kong mobile banking app and let customers subscribe to tokenised investment products using the stablecoin. The bank says those products are expected to include a new share class of its HKD money market fund. These functions are planned extensions; the current rollout is centered on payments through PayMe.

HSBC also said it intends to expand RedCoin into wholesale corporate and institutional use cases. The move follows its participation in HKMA digital-asset initiatives including the e-HKD+ Pilot Programme and Project Ensemble, according to the bank. For now, the retail launch establishes the wallet and payment channel through which HSBC says it will add those uses.

Sources

• HSBC’s launch announcement — about.hsbc.com.hk
• South China Morning Post’s report on the rollout — scmp.com