HSBC launched its Hong Kong dollar stablecoin on PayMe, reaching 3 million wallets in a major test of bank-issued tokenized money.
DeFi & Yields ·
HSBC activated RedCoin, a Hong Kong dollar stablecoin licensed by the Hong Kong Monetary Authority, on its PayMe app on Friday, making it available to more than 3.3 million users who can activate wallets in the coming days. Users can transfer RedCoin to peers or transact at over 100,000 PayMe merchants, with HSBC planning to integrate the token into its HK Mobile Banking app later in the year. The move marks a significant test of whether bank-issued tokens can function as everyday payment instruments rather than trading assets confined to crypto platforms.
RedCoin operates on HSBC's private ledger rather than a public blockchain, and balances cannot transfer between PayMe and the banking app. Shortly after launch, roughly $10.2 million in RedCoin was circulating, fully backed by $10.4 million in cash reserves according to the bank's tracker. The arrangement does not constitute a bank deposit, so Hong Kong's Deposit Protection Scheme does not cover RedCoin holdings.
HSBC obtained its stablecoin issuer license in April under a regulatory regime that took effect in August 2025, competing against at least 36 other applicants. The bank has outlined plans to tokenize a share class of its Hong Kong dollar money market fund within its banking app, and says the first independent attestation of RedCoin's reserves is expected after the fourth quarter of 2026. It remains unclear how rapidly adoption will scale beyond the initial PayMe user base.