HSBC unveils RedCoin as name of its Hong Kong stablecoin for 3.3 million PayMe users

HSBC has announced the launch of its new stablecoin, named HSBC RedCoin, for its Hong Kong-based PayMe app, which serves over 3.3 million users. This move will allow PayMe users to utilise RedCoin for money transfers, shopping, and dining. The stablecoin will initially be available through PayMe and HSBC’s Hong Kong mobile banking app.

HSBC’s CEO, Maggie Ng, noted that the survey of 1,000 customers revealed strong interest in digital assets, with 74% recognizing at least one use case for stablecoins. The most popular use case was digital asset trading and tokenised investments, chosen by 57% of respondents, followed by person-to-person money transfers at 53% and cross-border remittances and merchant payments both at 52%.

Despite misunderstandings, 60% of customers correctly defined stablecoins as fiat-backed digital assets. HSBC emphasized that the stablecoin is not an interest-bearing asset, as allowed by Hong Kong’s regulatory framework. Ng stated that the bank's heritage is reflected in the name, as HSBC has operated in Hong Kong since 1865 and is the largest of the three note-issuing banks in the city.

HSBC plans to launch the stablecoin in phases, starting with everyday use cases such as person-to-person and person-to-merchant payments. The bank aims to support Hong Kong’s financial innovation while maintaining the security, trust, and simplicity that define HSBC.