HSBC began rolling out RedCoin (RCHKD), its Hong Kong dollar stablecoin, on Oct. 23 through its PayMe payments app, letting eligible users send tokens to other users and pay merchants.
The bank’s launch announcement puts PayMe’s reach at more than 3.3 million users and over 100,000 merchants. Wallet activation will continue over the coming days, so these figures reflect the network’s potential reach.
Payments are the initial use case, while tokenized investment subscriptions through the separate HSBC HK App remain planned for later this year.
PayMe users must meet the wallet’s eligibility requirements and activate a stablecoin wallet before converting Hong Kong dollars into RedCoin. HSBC’s terms describe buying one token by deducting HK$1 from the user’s HKD balance in the same channel.
Once activated, the wallet supports transfers to other PayMe stablecoin-wallet holders. For shopping, HSBC’s product FAQ says users can pay with their RedCoin balance wherever a business accepts PayMe, without checking separately whether that merchant accepts the stablecoin.
HSBC restricts RedCoin distribution to its official channels, with PayMe live and the HSBC HK App forthcoming. The bank says the token isn’t available on third-party platforms and runs on its own distributed-ledger network.
Under the RedCoin terms, holders submit a request through the permitted app and receive HKD at the token’s face value in their HKD wallet or account on that same channel, after any applicable fees.
HSBC’s terms require immediate processing of valid redemption requests, subject to conditions, within one business day. HSBC can refuse or delay transactions because of wallet limits, incomplete instructions, legal or fraud concerns, or events outside its reasonable control.
HSBC says RedCoin is backed by segregated, liquid, high-quality assets, with reserves covering the coins outstanding at all times. RedCoin pays no interest and falls outside Hong Kong’s Deposit Protection Scheme.
Investments remain forthcoming
HSBC plans to add a stablecoin wallet to its HSBC HK Mobile Banking App later in 2026 and enable subscriptions to tokenized investment products. The plans include a forthcoming share class of the bank’s HKD money market fund.
The product FAQ labels those services as coming soon and explicitly rules out transferring RedCoin between the PayMe and HSBC HK App stablecoin wallets.