HSBC launches RedCoin for 3.3 million users
📋 Summary
HSBC has launched RedCoin, a stablecoin pegged to the Hong Kong dollar, for payments on PayMe. The regulated currency could reach 3.3 million users and more than 100,000 merchants, bringing digital assets closer to everyday use.
HSBC launched RedCoin (RCHKD), its first stablecoin, this Friday (23), initially distributing it through the PayMe app in Hong Kong. The digital currency, pegged to the Hong Kong dollar, will be available to a base of more than 3.3 million users, who will be able to activate a wallet in the app in the coming days.
The move puts one of the world’s largest banks directly into the stablecoin payments market. According to HSBC’s official announcement, RedCoin can be used for transfers between people and for payments at more than 100,000 merchants that already accept PayMe.
How RedCoin will work on PayMe
Each RedCoin is designed to be worth one Hong Kong dollar and redeemable on a one-to-one basis. The bank says the asset is fully backed by segregated, liquid, high-quality reserves under license FRS02, granted by the Hong Kong Monetary Authority (HKMA).
In practice, users will be able to convert their balance into RCHKD and send the stablecoin to contacts or pay merchants through the familiar PayMe interface. Custody will be handled by HSBC Digital Assets Custody, while issuance and transfers will use smart contracts on the bank’s proprietary distributed ledger network.
This architecture highlights an important difference from open stablecoins such as USDT and USDC: RedCoin is being launched within a regulated banking environment and, initially, will circulate through HSBC channels. The institution itself emphasizes that the stablecoin wallet is not a bank account and is not covered by Hong Kong’s deposit protection scheme.
📋 Summary
HSBC has launched RedCoin, a stablecoin pegged to the Hong Kong dollar, for payments on PayMe. The regulated currency could reach 3.3 million users and more than 100,000 merchants, bringing digital assets closer to everyday use.
HSBC launched RedCoin (RCHKD), its first stablecoin, this Friday (23), initially distributing it through the PayMe app in Hong Kong. The digital currency, pegged to the Hong Kong dollar, will be available to a base of more than 3.3 million users, who will be able to activate a wallet in the app in the coming days.
The move puts one of the world’s largest banks directly into the stablecoin payments market. According to HSBC’s official announcement, RedCoin can be used for transfers between people and for payments at more than 100,000 merchants that already accept PayMe.
How RedCoin will work on PayMe
Each RedCoin is designed to be worth one Hong Kong dollar and redeemable on a one-to-one basis. The bank says the asset is fully backed by segregated, liquid, high-quality reserves under license FRS02, granted by the Hong Kong Monetary Authority (HKMA).
In practice, users will be able to convert their balance into RCHKD and send the stablecoin to contacts or pay merchants through the familiar PayMe interface. Custody will be handled by HSBC Digital Assets Custody, while issuance and transfers will use smart contracts on the bank’s proprietary distributed ledger network.
This architecture highlights an important difference from open stablecoins such as USDT and USDC: RedCoin is being launched within a regulated banking environment and, initially, will circulate through HSBC channels. The institution itself emphasizes that the stablecoin wallet is not a bank account and is not covered by Hong Kong’s deposit protection scheme.