HSBC launches RedCoin on PayMe, paving the way for access by more than 3.3 million users
Key Facts
HSBC in Hong Kong announced the launch of its RedCoin stablecoin within the PayMe app on 23 October 2026, beginning its rollout for everyday payments. The bank said more than 3.3 million app users would be able to activate their wallets in the days following the launch, meaning the figure represents the pool of eligible users, not the number of wallets already activated. The coin carries the ticker RCHKD and is denominated in Hong Kong dollars. The service enables instant transfers between individuals, as well as direct payments to merchants through PayMe. These use cases put the coin on a retail payments track from the outset, while the bank plans to expand it later to tokenized investment products.
According to HSBC, RedCoin can be used to pay at more than 100,000 merchants through PayMe, and the announced functionality also includes instant transfers between users. The bank did not announce an expected transaction volume or the number of wallets activated when the service began. The launch was preceded by an internal test involving about 100 users, covering the customer journey from coin issuance and wallet activation to making actual transfers. The bank said the test ran during the months before launch. The exercise offers an indication that usage steps were tested before the product was offered to customers, while activation across the PayMe base will take place in the following days.
HSBC said RedCoin is licensed and regulated by the Hong Kong Monetary Authority, and follows the financial crime prevention standards required by the city's Stablecoins Ordinance. The launch comes under a licensing regime that took effect on 1 August 2025, making the issuance of fiat-referenced stablecoins a regulated activity requiring a licence. On 10 April 2026, the Monetary Authority announced that it had granted licences to HSBC and Anchorpoint Financial after assessing 36 applications. Anchorpoint is a joint venture between Standard Chartered Bank (Hong Kong), HKT and Animoca Brands. The Authority's framework aims to make regulated stablecoins available for use in the real economy and financial activities, while applying the principle of “same activity, same risks, same regulation.”
The government requires licensed issuers to complete platform and system testing and risk management measures before starting commercial operations, including reserve management and custody, price-stabilisation mechanisms, redemption arrangements and technology security. In June, the government had forecast that regulated stablecoins would launch in Hong Kong as early as mid-2026, based on the plans of licensed issuers at the time. The head of PayMe told the South China Morning Post that activating a RedCoin wallet requires no minimum balance or additional account-opening requirements. HSBC also announced exclusive discounts on PayMe transactions and RewardCash rewards to mark the launch, without specifying their value. These arrangements combine regulatory requirements with access through an existing app, while the bank has not set a specific date for subscriptions to the announced investment products to begin.
HSBC plans to make subscriptions to tokenized investment products using RedCoin available later in 2026, including a tokenized share class of a money market fund. The launch announcement did not specify an exact date for this step. According to the bank's plan, this phase represents an expansion from everyday payments to using the coin to subscribe to investment products. In Hong Kong, 53% of respondents in an HSBC survey said Hong Kong dollar-denominated stablecoins could enhance economic competitiveness through round-the-clock payments and support for trade, tourism and cross-border commerce. This reflects respondents' view of the potential benefits of stablecoins, while RedCoin's rollout begins with payment and transfer use cases within PayMe.
The bank positions RedCoin among its existing digital products in Hong Kong, which include digital bonds for institutions through the HSBC Orion platform, a gold token for individuals and a tokenized deposit service for wholesale payments. HSBC said Orion had enabled the issuance of more than 8.3 billion U.S. dollars in digitally native bonds worldwide since its launch in 2023. The gold token also recorded 390,000 transactions with a total trading value of 2.5 billion U.S. dollars through the end of August 2026. Maggie Ng, HSBC's chief executive in Hong Kong and head of retail banking and wealth, said the bank sees an opportunity to help clients manage the transition of assets and information to programmable digital networks and provide practical services that support the real economy. The coin's launch adds a product aimed at individuals to the bank's digital track record in the city, with use starting through payments and transfers before the planned expansion into investment.
An HSBC survey published in June 2026 found that 74% of respondents knew at least one use for stablecoins, with digital asset trading and tokenized investments topping the known uses at 57%. In a survey published by the bank on 30 September, 62% said regulatory clarity boosts confidence in stablecoins, while 55% pointed to the importance of education. These findings come as Hong Kong has begun implementing its licensing framework and the Authority has granted licences to HSBC and Anchorpoint. The bank's next announced step is to make subscriptions to tokenized investment products using RedCoin available during the remainder of 2026. The current rollout will begin with PayMe users activating wallets in the days after the 23 October announcement, after which the pace of adoption will become clearer.