HSBC put its first stablecoin, a Hong Kong dollar token called HSBC RedCoin (ticker RCHKD), on its PayMe payments app on Oct. 23, the bank announced. The Hong Kong Monetary Authority (HKMA) oversees the token and licensed The Hongkong and Shanghai Banking Corporation as a stablecoin issuer in April.
Access is arriving in stages. HSBC said more than 3.3 million PayMe users will be able to turn on a stablecoin wallet inside the app over the next several days, then use it to send the token to friends and family or to pay at more than 100,000 merchants that take PayMe. Before going live, the bank ran staff pilots with close to 100 employees covering the full process, from minting through wallet activation to live transfers.
Maggie Ng, HSBC’s chief executive for Hong Kong, said the bank has “an opportunity to help customers in Hong Kong manage this shift with practical products and services that support the real economy.”
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Tokenized Funds Next
Later this year, HSBC plans to bring the wallet to its HSBC HK Mobile Banking App and let customers use RedCoin to subscribe to tokenized investment products, including a yet-to-launch share class of its Hong Kong dollar money market fund.
“This is only the beginning,” John O’Neill, HSBC’s managing director for digital assets and currencies, said in the release, adding that the bank “will soon add more products, including expanding into wholesale corporate and institutional use cases.”
The bank pointed to a June online survey of 1,060 of its customers aged 18 to 64, in which 53% said HKD stablecoins could make Hong Kong’s economy more competitive. HSBC said access through apps people already use, along with faster settlement, ranked among the strongest pulls toward adoption. HSBC Digital Assets Custody will safeguard the token.
Hong Kong’s Licensing Regime
Issuing a fiat-backed stablecoin in Hong Kong has required a license since the Stablecoins Ordinance took effect on Aug. 1, 2025. On April 10, the HKMA licensed HSBC’s banking arm, The Hongkong and Shanghai Banking Corporation, together with Anchorpoint Financial, the Standard Chartered–HKT–Animoca Brands joint venture.
RedCoin joins a set of tokenized products HSBC already runs in the city. Its HSBC Orion platform has handled more than $8.3 billion in digitally native bond issuance worldwide since 2023, and its retail HSBC Gold Token had logged 390,000 trades worth $2.5 billion by the end of August, according to the bank.
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