British banking giant HSBC launched RedCoin (RCHKD), a stablecoin pegged to the Hong Kong dollar. The digital asset will be available to more than 3.3 million users of the PayMe by HSBC payment app.
HSBC Hong Kong, the city’s largest commercial bank and a key subsidiary of the international HSBC financial group, introduced its first stablecoin, RedCoin, designed for everyday payments.
The bank obtained a license from the Hong Kong Monetary Authority (HKMA) in April 2026. The issuance and circulation of RCHKD are therefore regulated under Hong Kong’s stablecoin legislation, which includes requirements for combating financial crime.
In the coming days, PayMe users will be able to activate a digital wallet directly within the app. HSBC initially plans to support 2 main use cases for RedCoin:
Peer-to-peer (P2P) transfers. Instant stablecoin transfers to friends, family members, and other users.
Person-to-merchant (P2M) payments. Digital currency payments at more than 100,000 merchant locations through PayMe.
Before the launch, HSBC conducted testing involving nearly 100 employees, covering stablecoin issuance, wallet activation, and transfers.
By the end of 2026, HSBC plans to add RedCoin support to its main mobile banking app, HSBC HK Mobile Banking App. The bank also intends to allow customers to purchase tokenized investment products using stablecoins, including shares of HSBC’s Hong Kong dollar-denominated money market fund.
John O’Neill, HSBC’s managing director of digital assets and currencies, emphasized that the RedCoin launch marks the initial stage of a broader expansion of the bank’s digital financial services, including stablecoin-based solutions for corporate and institutional clients.
According to an HSBC survey conducted in June 2026 among 1,060 bank customers, 53% of respondents believe Hong Kong dollar-pegged stablecoins could improve the economy’s competitiveness by enabling round-the-clock payments and supporting international trade.
The launch of RCHKD is part of HSBC’s ongoing strategy to develop tokenized financial instruments and digital asset projects, including:
HSBC Gold Token. A digital product linked to gold, introduced in 2024. By the end of August 2026, trading volume reached $2.5 billion across 390,000 transactions.
HSBC Orion. A digital bond issuance platform launched in 2023. Total issuance exceeded $8.3 billion, with issuers including governments, central banks, financial institutions, and corporations.
HSBC Tokenised Deposit Service. A tokenized deposit service for corporate settlements that launched in May 2025.
The bank also participates in HKMA initiatives focused on central bank digital currency (CBDC) development and tokenization, including Project e-HKD+ and Project Ensemble. In addition, HSBC became the first institution to receive approval for full-scale testing of securities tokenization within a regulatory sandbox in the U.K.
