HSBC has launched RedCoin, a Hong Kong dollar stablecoin, for its PayMe service. The digital asset is available to over 3.3 million users, who can use it for peer-to-peer transfers and payments at more than 100,000 merchants. Each RedCoin is pegged to one Hong Kong dollar.
The bank received its issuer license from the Hong Kong Monetary Authority in April, following a regulatory regime that began in August 2025. HSBC secured this license among at least 36 competing companies. The token operates on a private ledger rather than a public blockchain.
Shortly after the launch, the circulating supply of RedCoin was approximately $10.2 million, backed by $10.4 million in cash reserves. The bank noted that RedCoin is not a bank deposit and is not covered by the local Deposit Protection Scheme.
HSBC plans to integrate the token into its HK Mobile Banking app later this year. This will allow customers to purchase tokenized shares of a money market fund. An independent audit of the reserves is expected following the fourth quarter of 2026.
