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HSBC launches RedCoin stablecoin on PayMe in Hong Kong

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HSBC launches RedCoin stablecoin on PayMe in Hong Kong

HSBC has launched its first stablecoin, HSBC RedCoin, on PayMe in Hong Kong. The HKD-denominated token is regulated by the Hong Kong Monetary Authority.

More than 3.3 million PayMe users will be able to activate a stablecoin wallet in the app in the coming days and use the token for payments between individuals and at merchants.

RedCoin, which will carry the ticker RCHKD, will be available for peer-to-peer transfers and payments at more than 100,000 merchants through PayMe. HSBC said the stablecoin meets the financial crime control standards required under Hong Kong's Stablecoins Ordinance.

The launch brings stablecoins into a mainstream retail payments product at one of the city's largest banks, as Hong Kong pushes ahead with a regulated framework for digital assets. HSBC received a stablecoin issuer licence from the Hong Kong Monetary Authority in April.

A survey commissioned by HSBC found that access through existing apps, along with faster payments and settlement, were among the strongest factors influencing adoption. It said 53 per cent of respondents believed HKD stablecoins could improve economic competitiveness by supporting round-the-clock payments and commerce linked to trade, tourism and cross-border activity.

The launch marks HSBC's first stablecoin for day-to-day consumer use. It recently ran staff pilots with nearly 100 users, testing the process from minting and wallet activation to live transfers.

HSBC is also preparing to add the stablecoin wallet to its HSBC HK Mobile Banking App later this year. It plans to let customers subscribe to tokenised investment products using RedCoin, including a new share class of its Hong Kong dollar money market fund.


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