HSBC has officially launched its RedCoin stablecoin for more than 3.3 million PayMe users in Hong Kong. The rollout represents the first retail deployment of a licensed bank-issued stablecoin under the city's Stablecoins Ordinance framework.
The phased launch began on October 23, 2026. Users can access the feature by updating the PayMe app and activating a RedCoin wallet without needing to open an extra account or maintain a minimum balance. The system enables users to send and receive Hong Kong dollars instantly via peer-to-peer transfers or make payments at over 100,000 participating merchants.
Phased Rollout and Merchant Settlement
Lawrence Li, head of PayMe, stated that the initial priority of the rollout is ensuring stable service and building customer trust without placing extra burdens on users. Merchant settlement will initially follow existing Hong Kong dollar schedules, with faster settlement timelines anticipated in future phases.
HSBC secured its issuer license (FRS02) from the Hong Kong Monetary Authority (HKMA) in April 2026. The HKMA has licensed two entities under its framework, granting permits to HSBC and an Anchorpoint joint venture led by Standard Chartered.
Expansion Into Tokenized Investments
HSBC plans to integrate RedCoin into its Hong Kong mobile banking application before the end of the year. This integration will allow customers to access tokenized investment products, beginning with a Hong Kong dollar money market fund requiring a minimum investment of HK$100, or approximately US$12.75. Tokenized gold and third-party funds are scheduled to follow.
John O'Neill, HSBC's managing director of digital assets and currencies, noted that stablecoin-based tokenized funds offer near-instant settlement and lower entry thresholds compared to traditional investment settlement processes that can take days.
Maggie Ng, CEO of HSBC Hong Kong, contextualized the launch within the bank's broader tokenization strategy, which includes issuing US$8.3 billion in tokenized bonds globally and recording US$2.5 billion in tokenized gold trading value in Hong Kong. Rival institution Standard Chartered is also advancing digital asset initiatives, including custody services for Ripple's RLUSD stablecoin.
