HSBC RedCoin opens PayMe stablecoin wallets to Hong Kong users

PayMe users in Hong Kong can activate a wallet to send HSBC RedCoin to other people and pay participating merchants as HSBC begins rolling out its HKD stablecoin. The bank announced the launch on 23 October, saying more than 3.3 million PayMe users would be able to use it as wallet access rolls out over the following days.

For users, RedCoin adds a stablecoin payment option inside a familiar app, while keeping its first uses within PayMe.

What can PayMe users do with RedCoin?

Users can send RedCoin to friends and family, or pay at more than 100,000 merchants through PayMe, according to HSBC’s launch announcement. HSBC describes the coin as HKD-denominated and identifies it by the ticker RCHKD. The South China Morning Post reported that users can activate a wallet after updating PayMe, with no minimum balance or additional account-opening requirement, citing PayMe head Lawrence Li.

That gives existing PayMe customers a short path to trying the wallet: update the app, activate it when the feature becomes available, then select it for a transfer or payment. The launch materials do not specify transaction fees, so users should check PayMe’s terms before assuming a RedCoin payment costs less than a standard one. HSBC said it would offer launch discounts on PayMe transactions, but did not detail their terms in its announcement.

How is RedCoin backed, and what can users redeem?

HSBC says RedCoin is issued under its Hong Kong Monetary Authority stablecoin licence and backed at all times by segregated, high-quality liquid assets. The coin is designed to be redeemable one-for-one for Hong Kong dollars, subject to its terms and conditions. HSBC’s RedCoin page also publishes circulation and reserve figures: as of 29 October, it reported HK$83.2 million in circulation and HK$84.2 million in reserve assets, all listed as cash.

That reserve snapshot is a dated disclosure, not a guarantee that the payment experience is identical to holding HKD in a bank account. HSBC says it will publish independent reserve attestations, with the first expected after the fourth quarter of 2026. Users can check the bank’s RedCoin page for updated circulation and reserve information.

Which features are not available yet?

For now, the retail wallet is available through PayMe; HSBC says wallet functionality in its Hong Kong mobile banking app is planned for later this year. The bank also plans to let customers use RedCoin to subscribe to tokenised investment products, including a planned share class of its HKD money market fund. Those additions have not yet arrived, so users looking to invest or use the coin through HSBC’s banking app will need to wait.

HSBC has also said it plans to expand into wholesale corporate and institutional uses, but gave no launch date for those services. The initial rollout is therefore limited to PayMe transfers and merchant payments, with investment access and the broader app rollout still ahead.

Source material

• HSBC’s launch announcement — about.hsbc.com.hk