HSBC Launches RedCoin Stablecoin for Retail Payments

HSBC has launched RedCoin, its first stablecoin denominated in Hong Kong dollars, for retail payments through the PayMe application. The token is designed to be redeemable one-for-one for Hong Kong dollars and is fully backed by high-quality liquid assets held in separate accounts. RedCoin operates on HSBC’s own private ledger rather than a public blockchain. Customers can use the stablecoin to send money to friends and family and to pay at more than 100,000 merchants.

More than 3.3 million PayMe users will be able to activate stablecoin wallets in the app in the coming days. HSBC Digital Assets Custody provides safekeeping services for the stablecoin. Shortly after launch, HSBC’s reserve tracker showed roughly $10.2 million in RedCoin circulating, backed by $10.4 million held entirely in cash. The first independent attestation of RedCoin's reserves is expected after the fourth quarter of 2026.

HSBC received its stablecoin issuer license from the Hong Kong Monetary Authority in April under a regime that took effect in August 2025. This consumer rollout follows Anchorpoint's rollout of its HKDAP stablecoin through HashKey Exchange in August. John O'Neill, HSBC's managing director for digital assets and currencies, stated that the bank will soon add more products.

HSBC plans to introduce RedCoin wallets to its HSBC HK Mobile Banking App later this year. In that app, customers will be able to subscribe to tokenized investment products, including a new share class of its Hong Kong dollar money market fund. The bank also plans to expand RedCoin into wholesale corporate and institutional applications.