HSBC rolls out RedCoin stablecoin to PayMe users in Hong Kong

HSBC has begun a phased rollout of its RedCoin stablecoin through PayMe, its Hong Kong payments app, opening potential access to more than 3.3 million users. For investors watching banks test digital money, the key distinction is that those users have not automatically received tokens: they will be able to activate RedCoin wallets in the app over the coming days, according to Decrypt's report on HSBC's announcement.

RedCoin is designed to track the Hong Kong dollar. One RedCoin, which uses the ticker RCHKD, is intended to equal HK$1, Decrypt reported. HSBC started the rollout on October 23, while the South China Morning Post also described the launch as a staged process for PayMe's more than 3.3 million users.

What can HSBC RedCoin be used for at launch?

Once a wallet is activated, customers can use RedCoin to send money to other users or pay participating businesses through PayMe, according to Decrypt. The report said more than 100,000 merchants accept PayMe payments.

A stablecoin is a digital token intended to hold a steady value against a regular currency. In this case, HSBC is offering a Hong Kong dollar-linked payment token inside an existing consumer app, rather than requiring customers to use a crypto exchange.

The service has limits that users should understand. Decrypt reported that RedCoin operates on HSBC's private ledger, rather than a public blockchain. RedCoin balances also cannot move between PayMe and HSBC's mobile banking app at present.

RedCoin is not a bank deposit, meaning it is not covered by Hong Kong's Deposit Protection Scheme, Decrypt reported. That separates it from money held in a qualifying deposit account, even though HSBC issues the token.

How much RedCoin is in circulation?

HSBC's reserve tracker showed about US$10.2 million of RedCoin in circulation shortly after the launch, with US$10.4 million held entirely in cash, according to Decrypt. Those figures come from HSBC's own tracker, not an outside audit. The bank expects its first independent attestation of reserves after the fourth quarter of 2026, the report said.

HSBC received a stablecoin issuer licence from the Hong Kong Monetary Authority in April, Decrypt reported. The regulator's stablecoin licensing framework took effect in August 2025.

Later in 2026, HSBC plans to add RedCoin to its HK Mobile Banking app, according to Decrypt. The bank has also discussed future corporate, institutional and tokenized-fund uses, but those plans are separate from the PayMe payment functions available in the initial rollout.

This story draws on original reporting from Decrypt.