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HSBC launches RedCoin for PayMe users in Hong Kong

HSBC has launched its HKD stablecoin on PayMe, opening wallet access to 3.3 million users and payments at more than 100,000 merchants across Hong Kong.

The Crypto News Week Editors2 min read

HSBC launches RedCoin for PayMe users in Hong Kong

3.3 million PayMe users are set to gain access to HSBC RedCoin, the bank’s first Hong Kong dollar stablecoin, as wallet activation rolls out in the app. HSBC announced the launch on 23 October, with users able to send RedCoin to friends and pay merchants through PayMe.

That figure is the number of PayMe users who will be able to activate a RedCoin wallet in the coming days, according to HSBC’s launch announcement.

For you, the launch puts a regulated HKD stablecoin inside an existing payment app used by millions of people.

What can you use RedCoin for in PayMe?

At launch, RedCoin supports peer-to-peer transfers and payments to more than 100,000 merchants through PayMe. HSBC says the wallet will let users send stablecoins instantly to friends and family, or pay participating merchants directly.

The coin’s ticker is RCHKD. HSBC says the Hong Kong Monetary Authority licensed and regulates it under the city’s Stablecoins Ordinance. The bank’s issuer licence number is FRS02.

The rollout is staged: HSBC said wallets would become available in the days after the launch announcement. The Block’s report on the launch also said PayMe users would be able to activate the wallet in-app for transfers and merchant payments.

What is HSBC planning beyond PayMe payments?

HSBC plans to add RedCoin wallet functionality to its Hong Kong mobile banking app later this year. It also plans to let customers use RedCoin to subscribe to tokenised investments, including a share class of the bank’s Hong Kong dollar money market fund.

Those features are planned additions, not part of the initial PayMe payment rollout. HSBC also says it intends to expand into wholesale corporate and institutional uses, though it has not provided details about those products or a timetable.

How does RedCoin fit HSBC’s digital asset plans?

HSBC has already offered digital bonds to institutional investors through HSBC Orion, a gold token for retail customers and tokenised deposits for wholesale payments in Hong Kong. RedCoin extends the bank’s digital asset activity to retail payments.

Before launch, HSBC tested the customer journey with nearly 100 staff, including minting, wallet activation and live transfers. The bank says HSBC Digital Assets Custody provides safekeeping for RedCoin.

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