HSBC launches RedCoin for base of more than 3.3 million users in Hong Kong
Key Facts
HSBC announced on 23 October 2026 the launch of its first stablecoin, RedCoin, under the ticker RCHKD, through its PayMe payments app, beginning its rollout in Hong Kong's retail and merchant payments market. The product is being rolled out gradually to the app's base of more than 3.3 million users, according to the South China Morning Post. The bank said in its launch statement that payments with the coin would be available at more than 100 thousand merchants through the app, alongside person-to-person transfers. RedCoin enables these transfers to be made instantly, according to the bank's official product page. Users can also pay for purchases directly with the coin at merchants participating in the acceptance network. Launch incentives announced by the bank include exclusive discounts on PayMe transactions, alongside RewardCash rewards.
PayMe users can activate a RedCoin wallet after updating the app, according to the South China Morning Post, as part of arrangements to make the coin available to customers of the existing payments service. Activation does not require a minimum balance, the newspaper said. Users also do not need to meet additional account-opening requirements to activate the wallet. Before the launch, HSBC conducted an internal trial involving about 100 employees to test the customer journey through the stages of using the coin, according to the bank's statement. The test covered RedCoin issuance and wallet activation through to live transfers, the stages employees tested before the product became available to the public.
RedCoin is designed to be redeemable against the Hong Kong dollar at a ratio of 1:1, according to HSBC, which specifies the redemption currency and ratio in its product description. In its statement on securing an issuance licence, the bank pledged that its stablecoins would be "fully backed at all times by high-quality, liquid assets held in segregated accounts". The launch falls under Hong Kong's regulatory regime for stablecoin issuers, which took effect on 1 August 2025, according to the Monetary Authority. Under the regime, issuing fiat-referenced stablecoins became a regulated activity requiring a licence. The authority's official register shows that the issuing entity, The Hongkong and Shanghai Banking Corporation Limited, has held a valid issuance licence since 10 April 2026. The Monetary Authority requires issuers to verify the identities of stablecoin holders. Verification can be conducted directly by the issuer itself or through trusted third parties, according to the rules outlined by the authority.
Before the launch, an HSBC survey of its customers revealed beliefs about who issues stablecoins and the returns they offer holders. The survey covered 1,060 bank customers aged between 18 and 64, according to the statement in which it published the results. The bank said 26% of respondents believed stablecoins were issued by governments. Another 10% believed they were instruments that paid interest on holdings. The bank explained that the interest feature was not covered by Hong Kong's current stablecoin regulatory framework, in its presentation of the customer survey results ahead of RedCoin's rollout.
On competition, the Monetary Authority said it awarded the first batch of two licences to HSBC and Anchorpoint from among 36 applications received. While RedCoin's use begins with person-to-person transfers and merchant payments through PayMe, Anchorpoint restricts pilot access to its HKDAP coin to companies and professional investors, according to its official website. The company intends to expand access to individuals at the full launch following the pilot phase. It also intends to publish regular independent attestation reports on its coin's reserves after the full launch, with the date of the first report to be announced later. HSBC, meanwhile, intends to add a stablecoin wallet to its Hong Kong banking app later in 2026, according to the RedCoin launch statement. The bank also plans to enable subscriptions to tokenised investment products using the coin during the same period. The planned products will include HSBC's existing Hong Kong dollar-denominated money market fund, according to the bank.