HSBC announced on Oct. 23, 2026, the launch of RedCoin, its first in-house stablecoin, under the RCHKD ticker. The Hong Kong dollar-pegged asset will give more than 3.3 million PayMe users access to instant transfers and merchant payments in the initial phase.

RedCoin has received a license from the Hong Kong Monetary Authority and complies with local stablecoin regulations. The HKMA granted HSBC an issuer license in April 2026 for digital assets pegged to fiat currencies.

PayMe rollout and investment plans

More than 3.3 million users of HSBC’s PayMe payment app will be able to activate a RedCoin wallet in the coming days. Initially, users will be able to make instant transfers to one another and pay more than 100,000 participating merchants.

Before the launch, HSBC conducted a pilot involving nearly 100 employees. Participants tested the full operational cycle, including token issuance, wallet activation and payment processing.

HSBC plans to integrate RedCoin into the HSBC HK mobile app by the end of 2026. The bank also plans to allow customers to invest in tokenized assets, including a new share class of a Hong Kong dollar money market fund.

The bank expects to expand the stablecoin’s use to corporate and institutional settlements. HSBC Digital Assets Custody provides custody services for the token.

HSBC’s tokenization services

RedCoin adds to HSBC’s existing tokenization infrastructure. The bank previously issued the gold-backed HSBC Gold Token. By the end of August 2026, the asset had recorded $2.5 billion in trading volume across 390,000 trades.

In May 2025, HSBC also unveiled a blockchain settlement system developed jointly with Ant International.

The launch comes as Hong Kong’s regulated stablecoin market develops. The HKMA previously warned about fake stablecoins using the HSBC and HKDAP tickers, saying they were not linked to licensed issuers. HSBC’s official token uses the RCHKD ticker.

Source: Incrypted