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HSBC launches RedCoin stablecoin on PayMe for retail payments

HSBC has launched its HKD stablecoin on PayMe, opening a regulated route for retail transfers and merchant payments as its wider rollout remains ahead.

BitCurrent Newsroom2 min read

HSBC launches RedCoin stablecoin on PayMe for retail payments

HSBC has launched RedCoin, its first Hong Kong dollar stablecoin, on PayMe, bringing regulated digital currency payments to the bank’s retail platform.

  • More than 3.3 million PayMe users are eligible as the rollout begins.
  • Payments will cover person-to-person transfers and more than 100,000 merchants.
  • Nearly 100 HSBC staff took part in pre-launch pilots.

HSBC said in its launch announcement that RedCoin, ticker RCHKD, is licensed by the Hong Kong Monetary Authority and denominated in HKD. The bank says users will be able to activate wallets in PayMe over the coming days.

What can customers use RedCoin for at launch?

RedCoin is for peer-to-peer transfers and payments to merchants through PayMe. HSBC says customers can send it to friends and family, or pay at more than 100,000 merchants on the platform.

The South China Morning Post’s report says customers can activate a wallet without a minimum balance or opening an additional account. The rollout is phased, so the announcement of availability does not mean every PayMe user can activate a wallet immediately.

How is RedCoin backed and regulated?

HSBC says RedCoin is issued under its HKMA stablecoin licence, granted in April 2026. The bank says each coin is fully backed by high-quality, liquid assets held in segregated accounts.

The licence places the coin within Hong Kong’s stablecoin framework. HSBC also says its financial crime controls for RedCoin meet the requirements of the Stablecoins Ordinance.

What remains outside the first phase?

The initial rollout is limited to PayMe payments. HSBC plans to add wallet functionality to its Hong Kong mobile banking app later this year and allow customers to use RedCoin to subscribe to tokenised investments, including a share class of its HKD money market fund.

Those additions are planned, not live. HSBC has also said it intends to expand into wholesale corporate and institutional uses, but has not detailed the products or timing. The first phase will show whether customers adopt a stablecoin through familiar payment tools; the bank’s broader plans remain to be tested.

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