HSBC has started rolling out its first stablecoin to retail users in Hong Kong. HSBC RedCoin (RCHKD), which is pegged to the Hong Kong dollar and licensed and regulated by the Hong Kong Monetary Authority (HKMA), became available through PayMe, the bank's payment app. Users can send the stablecoin to friends and family and pay merchants that accept PayMe.
Phased rollout to 3.3 million PayMe users
More than 3.3 million PayMe users will be able to activate a stablecoin wallet in the app over the following days, with access introduced in phases. Payments can be made at more than 100,000 merchants that accept PayMe. The stablecoin runs on HSBC's technology and security systems and is designed to meet the financial crime control requirements of Hong Kong's Stablecoins Ordinance. HSBC Digital Assets Custody provides safekeeping services for RedCoin.
Before the launch, HSBC tested the service with regulators and prospective users. Nearly 100 staff took part in pilot tests covering the full customer journey, including creating stablecoins, activating wallets, and making live transfers. The HKMA granted HSBC a stablecoin issuer licence in April 2026.
Survey findings and next steps
According to an HSBC survey, access through existing apps, faster payments, and quicker settlement are among the main factors driving stablecoin adoption. The survey also found that 53% of respondents believe Hong Kong dollar stablecoins could improve Hong Kong's economic competitiveness by enabling round-the-clock payments and supporting trade, tourism, and cross-border commerce. Maggie Ng, CEO of HSBC Hong Kong and Head of Retail Banking and Wealth, Hong Kong, said the bank aims to help customers adapt to changes in digital payments through products backed by its security and banking capabilities.
HSBC plans to add stablecoin wallet functionality to its HSBC HK Mobile Banking App later in 2026. The bank also intends to let customers subscribe to tokenised investment products using RedCoin, including a new share class of its existing Hong Kong dollar money market fund. John O'Neill, Managing Director, Digital Assets and Currencies at HSBC, said the bank plans to extend RedCoin to wholesale, corporate, and institutional services.
