HSBC launches RedCoin for 3.3 million users via PayMe
HSBC puts RedCoin live in PayMe
HSBC started making its RedCoin available to users in Hong Kong on October 23. RedCoin is a stablecoin, which is a type of digital token designed to keep a fixed value equal to one Hong Kong dollar. The bank rolled out the digital currency through its PayMe payments app.
The bank says eligible users can now activate wallets, send RedCoin to other PayMe users, and pay participating merchants. Activation is happening in phases and is expected to finish in the coming days. HSBC limits the distribution of this stablecoin to its own official channels, meaning it is not currently available on third-party trading platforms.
What the launch numbers show
- The PayMe app has more than 3.3 million users and over 100,000 participating merchants.
- The token is known as RedCoin (RCHKD) and runs on a dedicated distributed ledger network operated by HSBC.
- Converting funds into RedCoin costs one HKD per token, deducted directly from the user's balance in the PayMe app.
- Users cannot currently transfer RedCoin between the PayMe app and the separate HSBC HK App.
Official terms and redemption
According to the bank's terms, RedCoin is backed by a separate pool of liquid, high-quality assets. These reserves are designed to cover all issued coins at all times. The token does not pay interest to holders.
Users can redeem RedCoin back into standard Hong Kong dollars at its face value. HSBC requires that valid redemption requests be processed within one business day. The bank notes it may delay or reject transactions if there are concerns about fraud, legal issues, or wallet limits.
Future investment plans
HSBC is preparing to launch a stablecoin wallet inside its main HSBC HK Mobile Banking App later this year. When that feature is ready, the bank plans to allow subscriptions to tokenized investment products, including a specific share class of its money market fund. However, the bank has explicitly stated that RedCoin cannot be moved between the PayMe wallet and the new app-based wallet.
Why it matters
This launch makes it easier for everyday consumers in Hong Kong to use a major bank's digital currency for daily shopping. It also sets a specific precedent for bank-operated stablecoins that function like a closed system, where assets cannot easily be moved between the bank's different applications or to outside platforms.
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.