HSBC rolls out HKD RedCoin on PayMe

HSBC has launched its first Hong Kong dollar-backed stablecoin, HSBC RedCoin (ticker RCHKD), on October 23, 2026, through its PayMe mobile payments app. The rollout introduces a fiat-backed digital token into an existing retail payment service, allowing PayMe users to transact in RedCoin for everyday transfers and purchases. More than 3.3 million PayMe users will gain access to RedCoin wallets over the coming days as HSBC activates the feature in phases.

RedCoin is initially available only within HSBC’s apps and is not listed on cryptocurrency exchanges. The Hong Kong Monetary Authority has warned that any tokens using the RedCoin or HSBC name on trading platforms are not the bank’s product. The design keeps activity within a regulated, bank-controlled environment while still offering users a stablecoin-based payment option.

PayMe customers can activate a RedCoin wallet after updating the app, without opening another account or maintaining a minimum balance. Once enabled, the wallet supports transfers between individuals and payments to more than 100,000 merchants that already accept PayMe. The interface mirrors the existing PayMe setup, aiming to keep the user experience consistent while adding a new settlement asset.

The figure of more than 3.3 million refers to PayMe’s eligible user base rather than the number of wallets already activated. Access is being introduced in stages instead of being switched on for every user at once. Before launch, HSBC conducted internal pilots with close to 100 employees to test processes from token minting through wallet activation to live transfers.

RedCoin is overseen by the Hong Kong Monetary Authority under the Stablecoins Ordinance, which came into effect on August 1, 2025. On April 10, 2026, the HKMA granted inaugural stablecoin issuer licences to HSBC’s Hong Kong banking arm and Anchorpoint Financial, making HSBC one of two authorised stablecoin issuers in the territory. Under this framework, a licence is required to issue fiat-backed stablecoins in Hong Kong.

HSBC states that RedCoin can be redeemed one-for-one for Hong Kong dollars. Each token is supported by high-quality, liquid assets held in segregated accounts, and the stablecoin must maintain appropriate reserves and redemption at its stated value. These requirements are intended to underpin the token’s price stability and support confidence in regulated digital payments.

HSBC plans to add RedCoin to its Hong Kong mobile banking app by the end of 2026, extending the stablecoin’s use beyond PayMe. Once integrated, customers will be able to use RedCoin to subscribe to tokenised investment products. Planned offerings include a share class of HSBC’s Hong Kong dollar money market fund and other tokenised money market funds.

Subscriptions to tokenised money market funds via RedCoin are planned to start from HK$100. HSBC also intends to offer access to tokenised gold (XAUUSD) and third-party funds after the initial investment products. These features remain future enhancements, separate from the payment and transfer functions available at launch.