HSBC has started rolling out its Hong Kong dollar stablecoin, RedCoin, through the PayMe payments app, opening a potential payments network to more than 3.3 million users and over 100,000 merchants.
The launch began on Oct. 23, with wallet activation continuing over the following days. Eligible PayMe customers can activate a stablecoin wallet, convert Hong Kong dollars into RedCoin and use the tokens for transfers or payments at businesses that accept PayMe. According to CryptoSlate, the rollout is initially focused on payments, while HSBC’s plans for tokenized investment products remain pending.
How RedCoin works in PayMe
Customers must satisfy the wallet’s eligibility requirements and complete activation before purchasing the token. Under HSBC’s terms, one RedCoin is bought by deducting HK$1 from the customer’s Hong Kong dollar balance through the same channel.
After activation, users can send RedCoin to other PayMe customers who have stablecoin wallets. They can also pay merchants using their RedCoin balance wherever PayMe is accepted. HSBC’s product FAQ says customers do not need to check separately whether a merchant accepts RedCoin, provided the business accepts PayMe.
The bank is limiting distribution to its own platforms. PayMe is the first channel, while a RedCoin wallet on the HSBC HK Mobile Banking App is planned for later in 2026. The token is not available through third-party platforms and operates on HSBC’s own distributed-ledger network.
Redemption, reserves and restrictions
RedCoin holders can request redemption through the permitted app and receive Hong Kong dollars at the token’s face value in their Hong Kong dollar wallet or account on that same channel, subject to any applicable fees. HSBC’s terms say valid redemption requests should be processed immediately, subject to conditions, and within one business day.
The bank may refuse or delay a transaction in circumstances including wallet limits, incomplete instructions, legal or fraud-related concerns, or events outside its reasonable control. HSBC says RedCoin is backed by segregated, liquid, high-quality assets, with reserves covering outstanding tokens at all times.
The stablecoin does not pay interest and is not covered by Hong Kong’s Deposit Protection Scheme. The terms also mean that RedCoin distribution and redemption remain tied to HSBC’s approved channels rather than broader crypto-market access.
Tokenized investments are planned for later
HSBC intends to add tokenized investment subscriptions through the stablecoin wallet in its HSBC HK Mobile Banking App. The planned offering includes a forthcoming share class of the bank’s Hong dollar money market fund, but the related services are marked as coming soon.
RedCoin cannot currently be transferred between the PayMe stablecoin wallet and the planned HSBC HK App wallet. That separation means the initial launch is centered on payments and user-to-user transfers within PayMe, rather than a fully connected HSBC wallet system.
Moneyiar market picture
Moneyiar data at 08:18–08:19 on Oct. 24, 2026, showed mixed performance among the listed digital assets:
- Nexus (NEX): $0.0000006249, down 1.14% in 24 hours and 14.75% over seven days.
- Walrus (WAL): $0.035483873, down 6.98% in 24 hours and 16.84% over seven days.
- ECOMI (OMI): $0.0002785198, up 0.79% in 24 hours and 10.46% over seven days.
- RedStone (RED): $0.149307398, up 5.9% in 24 hours and 4.84% over seven days.
