HSBC Launches RedCoin, a Hong Kong Dollar Stablecoin

HSBC on Oct. 23 launched its first Hong Kong dollar stablecoin, RedCoin (RCHKD). The token debuts in the PayMe app: HK$1 buys one RedCoin, and more than 3.3 million PayMe users are set to get access to wallets over the coming days, The Block reports.

Details

The first phase covers person-to-person transfers and in-store payments. PayMe connects to a network of more than 100,000 merchants in Hong Kong. By the end of 2026 the bank plans to bring the token into the HSBC Hong Kong mobile banking app, where it could be used to buy tokenized investment products, ForkLog reports. The coverage does not say which blockchain the token runs on.

The Hong Kong Monetary Authority (HKMA) granted HSBC a stablecoin issuer licence on April 10, 2026, the bank said. The activity falls under Hong Kong's Stablecoins Ordinance, in force since August 2025. HSBC Hong Kong CEO Maggie Ng said money, assets and information are moving to "always-on, data-rich and increasingly programmable digital networks." John O'Neill, who runs digital assets at the bank, said HSBC also sees wholesale corporate and institutional use cases.

What it means for the market

The launch shows regulated, local-currency stablecoins moving into the mass-market payment apps of major banks. RedCoin is pegged to the Hong Kong dollar rather than the US dollar, so it does not compete head-on with Tether or USDC, but it widens the market for bank-issued tokens. No direct effect on bitcoin is visible yet; live market data is in the daily summary.