HSBC Launches HKD Stablecoin RedCoin to 3.3 Million PayMe Users

HSBC on Friday activated RedCoin (ticker RCHKD), a Hong Kong dollar stablecoin available to more than 3.3 million PayMe users for peer payments and purchases at over 100,000 merchants, the bank announced. Roughly $10.2 million in RedCoin was circulating shortly after launch, backed by $10.4 million held entirely in cash, according to HSBC's reserve tracker. The token runs on HSBC's private ledger rather than a public blockchain, and balances cannot move between PayMe and HSBC's banking app. It is not a bank deposit and is not covered by Hong Kong's Deposit Protection Scheme. HSBC obtained its issuer license from the Hong Kong Monetary Authority in April under a regime effective August 2025, beating at least 36 competing applicants. Managing Director of Digital Assets and Currencies John O'Neill said the bank will "soon add more products," including wholesale corporate and institutional use cases. HSBC plans to bring the token to its HK Mobile Banking app this year and expects first independent reserve attestation after the fourth quarter of 2026. Tether's USDT and Circle's USDC dominate a stablecoin market worth more than $300 billion.