HSBC launches RedCoin for 3.3M PayMe users with strict eligibility rule

HSBC launched its Hong Kong dollar stablecoin RedCoin (RCHKD) on Oct. 23 via the PayMe app, allowing eligible users to send tokens and pay merchants. The service targets over 3.3 million users and 100,000 merchants, with wallet activation ongoing. Payments are the initial use case, while tokenized investment subscriptions through the HSBC HK App are planned for later this year. Users must meet eligibility requirements and activate a stablecoin wallet to convert Hong Kong dollars into RedCoin, with one token costing HK$1 deducted from their balance. Once activated, users can transfer RedCoin to other PayMe wallet holders and pay at businesses accepting PayMe without needing to check for stablecoin acceptance. HSBC restricts RedCoin to its official channels, stating it is not available on third-party platforms and operates on its own distributed-ledger network. Holders can redeem RedCoin for HKD at face value, subject to conditions, within one business day. HSBC reserves the right to refuse or delay transactions due to wallet limits or legal concerns. RedCoin is backed by high-quality assets and does not earn interest, falling outside Hong Kong's Deposit Protection Scheme. HSBC plans to introduce a stablecoin wallet in its HSBC HK Mobile Banking App later in 2026.

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