Cryptoupdated 53m ago2 min read
HSBC Launches HKD-Backed RedCoin Stablecoin on PayMe for Hong Kong Users
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HSBC launches HKD-backed RedCoin on PayMe, regulated by HKMA under HKD peg. More than 3.3 million PayMe users can transfer P2P and pay 100,000+ merchants.
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HSBC launches RedCoin
HSBC launched its first stablecoin, HSBC RedCoin (RCHKD), on its PayMe payment app in Hong Kong, enabling users to make digital payments to individuals and merchants. HSBC RedCoin is pegged to the Hong Kong dollar (HKD) and is licensed and regulated by the Hong Kong Monetary Authority (HKMA) under the city’s stablecoins framework. HSBC said more than 3.3 million PayMe users will be able to activate a stablecoin wallet through the app in the coming days, and the wallet would let users send stablecoins instantly and pay at more than 100,000 merchants that accept payments through PayMe.
HSBC’s launch also included an internal pilot with nearly 100 staff members that tested the customer journey, including creating stablecoins, activating wallets and making live transfers. HSBC said it plans to add stablecoin wallet functionality to its HSBC HK Mobile Banking App later this year and intends to allow customers to subscribe to tokenised investment products using RedCoin.
What the first phase does
HSBC rolled out RedCoin in stages from Friday, with wallet activation available inside PayMe over the following days and full coverage of the app’s user base expected before the weekend. HSBC said the first phase covers two functions: instant person-to-person transfers between PayMe users and payments to more than 100,000 participating merchants. Lawrence Li, HSBC’s head of retail banking products and chief executive of PayMe, said, "The key priority in the first phase is ensuring stable service, avoiding extra burdens for customers and winning their trust."
John O’Neill, HSBC’s managing director of digital assets and currencies, said, "Traditional investment settlement can take days, but subscribing to tokenised funds through a stablecoin enables instant settlement and significantly lowers the threshold." HSBC said it plans to let customers subscribe to tokenized investment products later, with the first offering described as a new share class of a Hong Kong dollar money market fund with a minimum of HK$100 (approximately $13).
Regulation, custody, and limits
HSBC said RedCoin is designed to meet the financial crime control requirements of Hong Kong’s Stablecoins Ordinance and that HSBC Digital Assets Custody provides safekeeping services for RedCoin. HSBC said it worked with regulators and prospective users to test the service ahead of launch, and it described RedCoin as redeemable one-for-one for Hong Kong dollars. The rollout followed Hong Kong Monetary Authority licensing in April, when the HKMA granted stablecoin issuer licences to HSBC and Anchorpoint Financial, with Anchorpoint’s HKDAP described as the first HKD stablecoin to go live under those licences.
InvestingLive reported that RedCoin’s blockchain and access to external wallets remained undisclosed, and it said two questions remained: on which blockchain RedCoin runs and whether it will ever be usable outside HSBC’s own apps. HSBC said it plans to expand RedCoin into wholesale corporate and institutional services, with John O’Neill describing the bank’s intent to expand RedCoin into wholesale corporate and institutional services.
