HSBC Launches RedCoin HKD Stablecoin on PayMe for Over 3.3M Users and Plans Tokenized Fund Access

HSBC announced on Oct. 23 that it launched its first stablecoin, a Hong Kong dollar token called HSBC RedCoin (ticker RCHKD), on its PayMe payments app under the oversight of the Hong Kong Monetary Authority (HKMA). In a staged rollout over the next several days, more than 3.3M PayMe users will be able to activate an in-app stablecoin wallet to transfer the token to peers or pay at more than 100k participating merchants, following staff pilots with close to 100 employees. Later this year, HSBC plans to integrate the wallet into its HSBC HK Mobile Banking App and allow customers to use RedCoin to subscribe to tokenized investment products, including a yet-to-launch share class of its Hong Kong dollar money market fund. The token is safeguarded by HSBC Digital Assets Custody and follows an April 10 HKMA stablecoin issuer license under Hong Kong's Stablecoins Ordinance, building on the bank's existing HSBC Orion platform—which has handled more than $8.3B in digitally native bond issuance worldwide since 2023—and its retail HSBC Gold Token, which logged 390k trades worth $2.5B by the end of August. "This is only the beginning," — John O'Neill, HSBC's managing director for digital assets and currencies.