HSBC’s RedCoin stablecoin launch on October 23, 2026, brings a Hong Kong dollar-backed token to more than 3.3 million PayMe users—but not to crypto exchanges. The phased rollout starts with transfers and merchant payments inside HSBC’s apps, with access to tokenised investment funds planned by year-end.
Key takeaways
- RedCoin’s initial uses are PayMe transfers and merchant payments.
- Wallet activation carries no minimum balance requirement.
- HSBC promises one-for-one redemption in Hong Kong dollars.
- Planned fund subscriptions would start at HK$100.
HSBC’s RedCoin stablecoin launch starts with PayMe
RedCoin, also identified as RCHKD, is rolling out through PayMe for transfers between users and payments to more than 100,000 merchants, HSBC said in its launch statement. Access is being introduced in phases rather than switched on for every eligible customer at once.
The figure of more than 3.3 million represents PayMe’s eligible user base, not the number of customers who have activated a RedCoin wallet. For now, the bank-issued stablecoin operates only within HSBC’s own apps.
Activating a wallet requires no extra account opening
Without any extra steps to open an account, PayMe users are able to set up a RedCoin wallet that requires no minimum balance. Once the app update is installed, users can choose the wallet and transfer funds instantly via an interface that mirrors the current PayMe setup.
The initial functions are everyday payments: sending funds to another user or paying a merchant. HSBC’s RedCoin launch therefore begins inside an established payments service, rather than as a token available for exchange trading.
Tokenised fund access is planned by year-end
HSBC plans to integrate RedCoin into its Hong Kong mobile banking app by the end of 2026, enabling instant subscriptions to tokenised money market funds from HK$100. Tokenised gold and third-party funds are planned to follow.
That planned integration extends the product beyond transfers and shopping payments to investment subscriptions. It remains a planned feature, separate from the payment functions available in the initial rollout.
Two licensed issuers in Hong Kong
On April 10, 2026, the Hong Kong Monetary Authority issued its inaugural stablecoin issuer licences to HSBC and Anchorpoint Financial, making HSBC one of just two companies authorised to issue stablecoins in the territory.
In August 2026, Anchorpoint Financial—a joint venture formed by Standard Chartered Hong Kong, HKT, and Animoca Brands—launched a staged institutional introduction of its HKDAP stablecoin.
The licences sit within Hong Kong’s stablecoin regulatory framework. The Stablecoins Ordinance took effect in August 2025, establishing a licensing regime for issuers of fiat-referenced stablecoins.
Redemption and app-only access distinguish RedCoin
According to HSBC, RedCoin can be redeemed one-for-one for Hong Kong dollars and is supported by assets held separately. A stablecoin is a digital token designed to maintain a steady value, typically through currency backing and reserve assets.
The immediate distinctions from stablecoins issued by crypto companies, such as USDT and USDC, are both the issuer and the usage scope. RedCoin comes from a licensed bank and currently stays within HSBC’s apps, while USDT and USDC move between wallets and exchanges.
RedCoin is not available for trading on cryptocurrency exchanges. The HKMA has warned about fraudulent tokens: assets trading on exchanges under the RedCoin or HSBC name are not the bank’s product.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.