More Than 3.3 Million Hong Kong Users Prepare for RedCoin Wallets on PayMe
Key Facts
HSBC announced on October 23, 2026, the launch of its first stablecoin, HSBC RedCoin, ticker RCHKD, through the PayMe app in Hong Kong. The bank said the coin is denominated in Hong Kong dollars and licensed and regulated by the Hong Kong Monetary Authority. But the launch does not mean wallets became immediately available to all customers; HSBC said more than 3.3 million PayMe users would be able to activate a wallet for the coin in the app over the following days. The announcement places the coin within a payments app used by that number of customers, with announced functions including instant person-to-person transfers and merchant payments. PayMe’s reach allows the service to start with everyday local payments, rather than limiting the announcement to the coin’s issuance alone.
Once the wallet is made available to them, customers can pay with the coin at more than 100,000 merchants through PayMe, according to an HSBC statement. The launch functions also include instant person-to-person transfers, adding a direct use for the coin within the app. The bank did not announce investment in tokenised assets as a launch function; it was mentioned among potential uses that services could expand into, not as a feature available now. The launch announcement also did not say that using the coin eliminates the need for external trading platforms, so the announced scope of the service centers on the PayMe wallet, payments and transfers. HSBC said its HSBC Digital Assets Custody service provides custody for the coin, without describing it as a separate division within the bank.
HSBC said its employees conducted an operational trial in the months before launch, involving nearly 100 users. The trial tested the customer journey from issuing coins and activating wallets to making live transfers, according to the bank’s statement. It therefore covered multiple operational stages before the service was made available to PayMe’s broader base of more than 3.3 million users. HSBC had previously announced that the launch of its Hong Kong dollar-denominated coin was planned for the second half of 2026. It said at the time that each coin would be fully backed at all times by high-quality, liquid assets held in segregated accounts. This complements the launch announcement’s mention of a custody service, while leaving reserve details and conditions tied to what was stated in the licensing announcement.
The launch follows Hong Kong’s establishment of a licensing regime for stablecoin issuers on August 1, 2025. Under the regime, issuing fiat-referenced stablecoins became a regulated activity requiring a licence from the Monetary Authority. The Authority said the first batch included 36 applications and that the two licences were granted to HSBC and Anchorpoint after an assessment of capabilities and risk management, as well as use cases and development plans. The Authority said licensed entities must complete testing of platforms and systems, implement risk-management measures and put human-resources arrangements in place before beginning to issue regulated coins. Supervisory requirements include managing and safeguarding reserve assets, price-stabilisation and redemption mechanisms, mitigating technology risks, combating money laundering and verifying coin holders’ identities.
The Monetary Authority said it would continue supervising licensed entities after operations begin through on-site examinations, off-site reviews, independent assessments and direct engagement with senior management. Among the potential uses for licensed stablecoins, the Authority listed domestic and cross-border payments, tokenised-asset trading, conditional payments and supply-chain finance. This is a list of potential uses under the regime, not an HSBC announcement that those functions are available in RedCoin at launch. In a survey HSBC published with its October 23 announcement, 53% of respondents said Hong Kong dollar stablecoins could strengthen economic competitiveness through round-the-clock payments and support for trade, tourism and cross-border commerce. The functions the bank has currently announced are limited to person-to-person transfers and merchant payments through PayMe.