HSBC Launches RedCoin Stablecoin for 3.3 Million PayMe Users in Hong Kong

Highlights:

• HSBC has launched its Hong Kong dollar-backed RedCoin stablecoin and is gradually rolling it out to 3.3 million PayMe users.
• PayMe customers can use RedCoin for transfers and merchant payments without opening another bank account.
• HSBC also plans to expand RedCoin into its banking app and support tokenised investment products.

Global banking giant HSBC has begun rolling out its Hong Kong dollar-backed stablecoin, HSBC RedCoin, to users of its PayMe payment app. The launch starts on October 23 and will gradually reach more than 3.3 million PayMe users in Hong Kong. Customers will be able to send money to one another and pay participating merchants using the digital currency.

According to an October 23 South China Morning Post report, HSBC is introducing RedCoin in stages to keep the service running smoothly. Lawrence Li, head of PayMe, said customers can activate a RedCoin wallet after updating their app. They will not need to open another account or maintain a minimum balance.

HSBC Launches HKD-Backed RedCoin Stablecoin for 3.3 Million PayMe Users in Hong Kong

According to the South China Morning Post, HSBC is rolling out its Hong Kong dollar-backed stablecoin, RedCoin, to more than 3.3 million PayMe users starting October 23. The initial phase… pic.twitter.com/dGitKCfD8Y

— Wu Blockchain (@WuBlockchain) October 23, 2026

RedCoin Payments Begin Through PayMe

The new wallet will work much like PayMe’s existing payment service. Users can select RedCoin in the app and instantly transfer funds to friends and family. They can also use it to pay merchants that accept PayMe, which has a network of more than 100,000 merchants.

Li said the bank’s top priority is reliable service and an easy customer experience. HSBC tested the payment system before the launch, with nearly 100 employees taking part in trials. The tests covered wallet activation, the creation of stablecoins and live transfers.

RedCoin is a stablecoin tied to the Hong Kong dollar. Unlike cryptocurrencies such as Bitcoin, which can change sharply in price, a currency-backed stablecoin is designed to maintain a steady value. HSBC says each RedCoin will be redeemable one-for-one for Hong Kong dollars and supported by high-quality liquid assets held separately.

Initially, RedCoin will remain within HSBC’s own apps. The bank has not announced support for external crypto wallets or public exchange trading.

HSBC Plans Tokenised Investments Through Its Banking App

HSBC also plans to bring RedCoin wallet features to its Hong Kong mobile banking app before the end of 2026. The next stage will let customers use the stablecoin to subscribe to tokenised investment products, including a Hong Kong dollar money market fund.

The bank expects subscriptions to start from HK$100. Tokenisation represents an investment through digital records, allowing ownership and transactions to be handled electronically. HSBC says stablecoin payments could settle these investments immediately rather than following slower conventional processes.

John O’Neill, HSBC’s managing director of digital assets and currencies, has also outlined plans to expand RedCoin services to corporate and institutional customers. Other potential products include tokenised gold and third-party funds, although HSBC has not provided launch dates for those additions.

Hong Kong Expands Its Regulated Stablecoin Market

HSBC received its stablecoin issuer licence from the Hong Kong Monetary Authority on April 10, 2026. Anchorpoint Financial, a venture involving Standard Chartered Hong Kong, HKT and Animoca Brands, received the other licence granted that day.

HSBC formally named the product RedCoin on September 30. In a survey of 1,060 Hong Kong customers, the bank found that 74% recognised at least one possible use for stablecoins. However, respondents also raised concerns about fraud protection and regulatory clarity.

The launch gives PayMe users a way to try a regulated stablecoin through an app they already use. HSBC has said customers should rely on its official platforms and avoid unrelated tokens that claim to carry its name.