HSBC Opens RedCoin Stablecoin to More Than 3.3 Million PayMe Users
Key Facts
HSBC said on 23 October 2026 that RedCoin, the bank’s first stablecoin, is available through the PayMe app in Hong Kong, beginning its use in everyday payments under the local regulatory framework. The coin, ticker RCHKD, is denominated in Hong Kong dollars and licensed and regulated by the Hong Kong Monetary Authority. The bank said more than 3.3 million PayMe users would be able to activate a wallet for the coin in the app in the days following its launch. That figure represents the pool of users eligible to access the wallet, not the number who have already activated it. The launch puts HSBC’s coin on an established payment platform used by the bank’s customers, with a phased start focused on transfers and purchases.
Available uses at launch include peer-to-peer transfers and direct payments at more than 100,000 merchants through PayMe. The bank said customers would be able to pay merchants with the stablecoin through the app, as well as send money between users. HSBC is thus linking the coin to existing payment services rather than limiting it to investment or institutional uses. The merchant network is important in expanding the range of possible transactions beyond personal transfers. Subscriptions to tokenized investment products, meanwhile, were cited by the bank as part of its plans for later this year, not as a service available at launch.
The launch follows a regulatory process that began when Hong Kong’s Stablecoins Ordinance took effect on 1 August 2025, establishing a licensing regime for regulated activities. In April 2026, the Hong Kong Monetary Authority granted licenses to HSBC and Anchorpoint Financial, among 36 applications cited by the regulator. The authority said at the time that regulated stablecoin launches were expected in the middle to second half of the year, after testing, preparations and risk-management procedures were completed. Licensing rules require the management and custody of reserve assets, price-stabilization and redemption mechanisms, and controls to combat money laundering and verify coin holders’ identities. The government also said in June that launches required platform and system testing, risk-management measures and staffing arrangements.
The development of the regulatory framework coincided with a government stance emphasizing that the number of licensed entities would be limited. The government said in June 2026 that the licensing threshold would remain high and that the number of additional licenses would remain very limited if granted. That month, it also said the two licensed entities were taking part in Monetary Authority pilot projects involving central bank digital currencies and tokenized deposits. In this context, RedCoin combines licensed bank issuance with direct use through a consumer payments app. This gives it a foothold in the regulated local market, while the pace of expansion remains tied to the services the bank adds and regulatory requirements.
The bank cited a survey in presenting the potential of Hong Kong dollar-denominated stablecoins, saying 53% of respondents believe they could enhance economic competitiveness. They linked that potential to round-the-clock payments and the support they could provide to trade, tourism and cross-border transactions. The survey sets out the potential benefits of stablecoins, while the current launch focuses on transfers and merchant payments through PayMe. HSBC said it had tested the customer journey internally with nearly 100 users in the months before the October 2026 launch. The trials covered coin issuance, wallet activation and actual transfers.
RedCoin’s launch comes as the bank steps up broader activity in digital assets. HSBC said its gold token had recorded 390,000 transactions, with cumulative trading value of $2.5 billion through the end of August 2026, after its launch in 2024. HSBC Orion, the bank’s platform, has enabled the issuance of digital bonds worth more than $8.3 billion worldwide since its launch in 2023. These products provide a backdrop to the move to bring a stablecoin into consumer and merchant payments, though the uses of the gold token, digital bonds and coins designed for transfers and payments differ. John O’Neill, an HSBC official, said the bank planned to add new products, adding: "We will soon add more products, including expanding into wholesale corporate and institutional uses."