HSBC launched its Hong Kong dollar stablecoin, HSBC RedCoin, on October 23 through PayMe.
RedCoin, ticker RCHKD, is licensed and regulated by the Hong Kong Monetary Authority. HSBC said more than 3.3 million PayMe users would be able to activate a stablecoin wallet in the coming days.
The wallet supports instant transfers to friends and family and payments at more than 100,000 merchants through PayMe. HSBC Digital Assets Custody provides safekeeping services.
Later this year, HSBC plans to add stablecoin wallets to its Hong Kong mobile banking app and enable subscriptions to tokenised investments, including a forthcoming share class of its HKD money market fund.
“We will soon add more products, including expanding into wholesale corporate and institutional use cases,” said John O’Neill, Managing Director, Digital Assets and Currencies at HSBC.
Digital Trade Outlook’s View
PayMe provides RedCoin with an established customer and merchant network. HSBC’s announcement separates the current retail rollout from planned investment and wholesale applications. For corporate users, those next stages are the relevant part of the bank’s stated expansion.