HSBC has begun to launch a Hong Kong dollar-backed RedCoin stablecoin to over 3.3 million PayMe users in Hong Kong.
RedCoin First, it will support peer-to-peer transfers and merchant payments through the PayMe application. HSBC plans to integrate RedCoin into its Hong Kong mobile banking app by the end of 2026.
HSBC stated that starting from October 23, 2026, Hong Kong users will be able to use this HKD-backed RedCoin stablecoin to send funds and make instant payments to merchants, without the need to open an additional account.
This line also plans to use RedCoin for tokenized investments, with a minimum investment amount of as low as HK $100.
HSBC launches RedCoin in phases through PayMe.
On September 30th, HSBC launched RedCoin in phases to avoid excessive system load, with full availability expected by the weekend. Users can directly activate the RedCoin wallet within PayMe, without the need to open a new account or maintain a minimum balance.
In the first phase, RedCoin will support transfers between users as well as payments to merchants. The transaction and balance limits of its wallet will be consistent with those of the regular Hong Kong dollar wallets in PayMe.
PayMe, the person in charge, stated that Lawrence Li indicated that the bank hopes to make this launch as simple as possible.
The key priority in the first phase is to ensure service stability, avoid imposing additional burdens on customers, and gain their trust.
In addition, HSBC stated that they had conducted tests with nearly 100 employees before the official launch. The trial run helped the bank to verify the wallet settings and payment functions.
HSBC plans to launch tokenized investments starting from HK $100 before the end of the year.
However, payment is just the beginning. HSBC plans to integrate RedCoin into its Hong Kong mobile banking app by the end of 2026.
This will allow customers to invest in tokenized money market funds in real time, with a minimum investment amount of only HK $100, which is approximately 12.75 US dollars.
The Managing Director of HSBC's Digital Assets and Currency Business, John O, stated that traditional investment settlements may take several days, whereas stablecoins can complete this process instantaneously.
"Traditional investment settlements may take several days, but by subscribing to tokenized funds with stablecoins, instant settlement can be achieved, and the barriers to entry are significantly reduced."
This line also plans to launch tokenized gold and third-party investment funds in the future.
HSBC stated that globally, it has supported the issuance of $8.3 billion in native digital bonds, and the cumulative trading volume of its tokenized gold products has reached $2.5 billion.
After obtaining a stablecoin license in Hong Kong, HSBC targets retail adoption
This launch follows HSBC's acquisition of a stablecoin issuance license from the Hong Kong Monetary Authority in April 2026. At the same time, Standard Chartered Bank, Animoca Brands, and HKT's supported joint venture Anchorpoint have also obtained relevant licenses.
To encourage the use of RedCoin, HSBC plans to offer cash rebate rewards and promotional activities in collaboration with popular shopping and dining brands.
For merchants, the initial settlement arrangements will be consistent with traditional Hong Kong dollar payments to avoid additional costs or system changes.
By introducing RedCoin to millions of existing PayMe users, HSBC aims to make digital currencies more accessible for everyday payments and investments.
