HSBC launches RedCoin for PayMe payments in Hong Kong

PayMe users in Hong Kong will be able to activate an in-app wallet to send RedCoin to friends and pay merchants, as HSBC begins rolling out its first HKD stablecoin. The bank said in its RedCoin launch announcement on 23 October that wallet activation would open over the coming days.

For PayMe customers, RedCoin adds a stablecoin payment option inside an app they already use, with broader investment features still to come.

How can PayMe users start using RedCoin?

HSBC says more than 3.3 million PayMe users will be able to activate a stablecoin wallet in the app. Once activated, it can be used for person-to-person transfers and payments at more than 100,000 merchants through PayMe, according to the bank.

The launch does not require users to move to a separate platform: HSBC is adding the wallet to PayMe, where the initial uses are everyday payments. The Block’s report on the rollout also says wallet activation will take place over the coming days, so access is being phased in rather than appearing for every user at once.

What does RedCoin cost to use?

HSBC’s announcement does not give a transaction fee schedule or per-payment limits, so users should check the app’s terms before making a transfer. The bank says it will offer launch-period PayMe transaction discounts alongside RewardCash, but it does not specify the discount amounts or dates in the announcement.

RedCoin is HKD-denominated and licensed and regulated by the Hong Kong Monetary Authority, HSBC says. The bank identifies it by the ticker RCHKD and says its digital assets custody service provides safekeeping; the launch notice does not explain whether users can transfer the token to wallets outside PayMe.

Which RedCoin features are still planned?

HSBC plans to add a stablecoin wallet to the HSBC HK Mobile Banking App later this year, extending access beyond PayMe. It also plans to let customers use RedCoin to subscribe to tokenised investment products, including a forthcoming share class of the bank’s HKD money market fund.

Those investment features are not part of the initial PayMe rollout. For now, the bank’s announcement sets out transfers to other users and merchant payments as the live uses, with broader retail banking functions and wholesale or institutional applications described as future plans.

Source material

• RedCoin launch announcement — about.hsbc.com.hk
• report on the rollout — theblock.co