HSBC’s RedCoin reaches 3.3 million PayMe users

HSBC on Friday launched RedCoin (RCHKD), its Hong Kong dollar stablecoin, for more than 3.3 million users of its PayMe platform.

It is the first retail stablecoin issued by a bank in Hong Kong.

Wallets pay more than 100,000 merchants across Hong Kong

RedCoin is a currency within PayMe, HSBC’s consumer payments app, and is pegged to the Hong Kong dollar. HSBC said users can activate a stablecoin wallet in the app over the coming days.

The wallet transmits tokens to friends and family. It also pays at over 100,000 merchants via PayMe.

The token is licensed and regulated by the Hong Kong Monetary Authority under the city’s Stablecoins Ordinance. The law, which targets issuers of fiat-referenced stablecoins, came into force in August 2025.

HSBC was awarded its issuer license, FRS02, in April 2026. PayMe is regulated by a separate stored value facility license, SVFB002.

HSBC Digital Assets Custody is the custodian of the tokens. The launch includes PayMe transaction discounts and RewardCash offers.

Hong Kong requires the identification of all stablecoin holders. But PayMe users had already undergone HSBC’s know-your-customer checks, so the closed system got over that hurdle and put the bank ahead of the curve in the retail market.

Pre-launch had staff pilots with ~100 users. They tested the minting, wallet activation, and live transfers.

HSBC is among the three commercial banks authorized to issue Hong Kong dollar banknotes. Since 2022, it has participated in the HKMA’s e-HKD+ Pilot Programme and Project Ensemble.

By the end of August 2026, its HSBC Gold Token for retail customers had logged 390,000 trades worth US$2.5 billion.

A tokenized HKD money market fund comes next

Later this year HSBC plans to let customers subscribe to tokenized investment products using RedCoin. First up is a new share class of its long-running HKD money market fund.

The fund plan was not mentioned when HSBC rolled out the RedCoin brand in September. Stablecoin wallet functions are also planned for the HSBC HK Mobile Banking App later this year.

“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.

“Money, assets and information are moving from traditional infrastructure to always-on, data-rich and increasingly programmable digital networks,” said Maggie Ng, chief executive of HSBC in Hong Kong.

HSBC is one of two companies in the HKMA’s first batch of licenses. The other is Anchorpoint Financial, a joint venture between Standard Chartered Bank (Hong Kong), HKT and Animoca Brands.

Anchorpoint began to roll out its HKDAP token in phases in August, initially opening the token to institutional and professional investors. As per Cryptopolitan, HKDAP had around 522,000 tokens in circulation as of August 19.

Anchorpoint has said retail access could be as soon as the end of 2026.

HSBC took the other route, going straight to consumers with an app that has millions of accounts.

HKMA took in 36 license applications in 2025.

The HKMA chief executive, Eddie Yue, said the regulator will first examine the performance of the first two stablecoins before approving others, previous Cryptopolitan coverage noted.