HSBC Rolls Out RedCoin Stablecoin to Millions of PayMe Users
HSBC is distributing its Hong Kong dollar-based RedCoin stablecoin to more than 3.3 million PayMe users. The bank is adding regulated digital currency payments to its existing retail network. According to an October 23 report by the South China Morning Post, the staged rollout allows users to transfer funds and pay merchants with RedCoin. HSBC expects to complete the initial rollout before the end of the week. Tokenised investment services will follow later this year.
PayMe Users Gain Easy Access to RedCoin Wallets
In the first phase, PayMe customers receive a RedCoin wallet after they upgrade the app. Users do not need an extra bank account or a minimum balance to use the service. Once activated, the wallet supports transfers and payments at merchants that accept PayMe. Lawrence Li, Head of PayMe at HSBC, said the feature was designed to match customers’ existing payment experience. Therefore, the bank aims to deliver reliable service without adding unnecessary steps.
The rollout proceeds in stages rather than activating the feature for all eligible users at once. On HSBC’s official RedCoin page, the digital asset converts one-for-one into Hong Kong dollars under specified conditions. RedCoin operates on the bank’s distributed ledger technology. Smart contracts manage token creation and transactions. However, the bank’s documentation clearly states that RedCoin wallets are not deposit accounts. As a result, they fall outside Hong Kong’s Deposit Protection Scheme. Customers access the stablecoin only through HSBC-approved apps, not through unrestricted public blockchain wallets.
Tokenised Investments to Follow Later This Year
By the end of 2026, HSBC plans to integrate RedCoin into its mobile banking app in Hong Kong. Customers will then be able to subscribe to tokenised investment products. The first offering will be a Hong Kong dollar money market fund with a minimum subscription of HK$100. In later phases, the bank intends to add tokenised gold and investment funds managed by third parties. Launch dates for these additional products have not yet been announced.
Hong Kong’s Regulated Stablecoin Market Expands
Hong Kong’s licensed stablecoin market has grown rapidly over the past year. The Hong Kong Monetary Authority granted its first stablecoin issuer licences to HSBC and to Anchorpoint Financial, a joint venture led by Standard Chartered that includes Animoca Brands. These approvals marked the first batch under the Stablecoin Ordinance, which took effect in August 2025. Consequently, regulated digital currency options continue to expand for retail users in the city.
