HSBC brings RedCoin stablecoin to PayMe for over 3.3 million users
A Hong Kong dollar token reaches PayMe users
HSBC has debuted its first stablecoin, RedCoin (ticker RCHKD), a Hong Kong dollar token, onto its PayMe app. A stablecoin is a type of crypto token that is designed to be linked to a traditional currency, in this case the Hong Kong dollar.
Over the coming days, more than 3.3 million PayMe users will be able to activate a stablecoin wallet in the app to send money to friends and family and pay at more than 100,000 merchants.
What RedCoin allows for now
- Payments: Users can send money to others and pay at over 100,000 merchants through PayMe.
- Access through an existing app: The rollout brings the token into an app that many PayMe users already rely on, without needing a separate exchange account.
- Claimed backing: HSBC has stated that RedCoin will be fully backed by high-quality liquid assets held in separate accounts.
Licenses and an earlier rollout
The launch follows the Hong Kong Monetary Authority granting its first stablecoin issuer licenses in April to HSBC and Anchorpoint Financial, a Standard Chartered-led venture.
Anchorpoint began a limited rollout of its HKDAP token in August, focused on institutional payments and settlement. No public details were given in the source about the scale of that earlier rollout beyond its focus.
Plans to expand beyond PayMe
HSBC plans to add a RedCoin wallet to its Hong Kong mobile banking app later this year. From there, customers would be able to use the token to subscribe to tokenized investment products, including a new share class of its existing Hong Kong dollar money market fund. A money market fund is a type of investment fund that typically holds short-term, lower risk assets.
According to John O'Neill, HSBC's managing director for digital assets and currencies, more products are planned, including expanding into wholesale corporate and institutional use cases.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.