TLDR
- HSBC launched its RedCoin (RCHKD) stablecoin on October 23, targeting more than 3.3 million PayMe users.
- Customers can use RedCoin for instant transfers and payments at over 100,000 Hong Kong merchants.
- HSBC plans to introduce tokenized money market fund investments starting at HK$100 before the end of 2026.
- The launch follows Hong Kong’s first stablecoin issuer licenses, granted to HSBC and Anchorpoint Financial in April.
HSBC launched its Hong Kong dollar-backed RedCoin stablecoin on October 23, bringing payments to PayMe’s more than 3.3 million users. The token, known as RCHKD, supports person-to-person transfers and payments at more than 100,000 merchants.
The bank is releasing wallet access over several days. Customers can activate RedCoin inside PayMe without opening an account or maintaining a minimum balance. The service initially runs through HSBC’s own payment platforms.
HSBC Brings RedCoin to PayMe
PayMe customers can send RedCoin to friends and relatives or spend it at local shops. Existing PayMe wallet limits apply to balances and transactions. Merchants will receive payments under their Hong Kong dollar settlement schedules.
HSBC tested wallet activation and live transfers with nearly 100 employees. The bank will offer transaction discounts and RewardCash during the rollout. The launch follows Mastercard’s stablecoin payment expansion for businesses this month.
Tokenized Fund Access Planned
HSBC plans to add RedCoin wallets to its Hong Kong mobile banking app before 2026 ends. Customers will then be able to buy digital versions of investment products, including a new share class of its Hong Kong dollar money market fund.
The planned fund service would allow purchases from HK$100, reports say. HSBC expects stablecoin payments to shorten subscription times. Unlike JPMorgan’s Ethereum deposit token, RedCoin serves retail customers through PayMe.
HSBC has not announced an exact launch date for the fund feature. The bank is considering tokenized gold products and funds from other providers at a later stage. It plans to extend RedCoin services to companies and financial institutions.
Hong Kong Licensing Sets Rules
The Hong Kong Monetary Authority approved HSBC and Anchorpoint Financial as its first stablecoin issuers on April 10. Anchorpoint, backed by Standard Chartered, HKT and Animoca Brands, began distributing its HKDAP token to institutional users in August.
HSBC says customers can redeem RedCoin one-for-one for Hong Kong dollars. The bank holds liquid reserve assets in separate accounts and provides custody through its digital assets service. This week, MoonPay and Dunamu outlined plans for international stablecoin payments.
HSBC provides digital bonds through Orion and gold tokens to retail investors. Its Orion platform has supported more than $8.3 billion in digital bond issuance globally. HSBC has not disclosed RedCoin’s underlying blockchain or whether external wallets will work.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
