HSBC launched RedCoin (RCHKD), its Hong Kong dollar stablecoin, on October 23 through its PayMe payments application. The rollout extends eligibility to PayMe's 3.3 million users and over 100,000 merchants, with wallet activation continuing over subsequent days.
Eligible users can convert Hong Kong dollars into RedCoin by deducting HK$1 from their HKD balance, then send tokens to other PayMe users or pay merchants accepting the app. HSBC stated that users can shop with RedCoin wherever PayMe is accepted without separately verifying merchant stablecoin acceptance.
Limited Initial Functionality
The bank restricts RedCoin to its official channels, with PayMe currently live and the HSBC HK Mobile Banking App wallet planned for later in 2026. RedCoin is not available on third-party platforms and operates on HSBC's own distributed-ledger network.
A significant constraint limits cross-platform use: the terms explicitly prohibit transferring RedCoin between PayMe and the forthcoming HSBC HK App stablecoin wallets. Tokenized investment subscriptions, including a share class of HSBC's Hong Kong dollar money market fund, remain planned features for 2026.
Redemption and Backing Terms
RedCoin holders can redeem tokens at face value in Hong Kong dollars through the permitted app, with HSBC required to process valid requests within one business day, subject to applicable fees and conditions. The bank reserves the right to refuse or delay transactions due to wallet limits, incomplete instructions, legal or fraud concerns, or circumstances beyond its reasonable control.
HSBC stated that RedCoin is backed by segregated, liquid, high-quality assets with reserves covering outstanding coins at all times. The stablecoin pays no interest and falls outside Hong Kong's Deposit Protection Scheme.
