HSBC unveils RedCoin as name of its Hong Kong stablecoin for 3.3 million PayMe users
HSBC on Wednesday named its stablecoin offering HSBC RedCoin, paving the way for Hong Kong’s biggest lender to make the coin available to the more than 3.3 million users of its PayMe app for money transfers, shopping and dining. When launched before the end of the year, the stablecoin would be offered only through PayMe and HSBC’s Hong Kong mobile banking app, HSBC said. The bank said it was…
HSBC has unveiled its new stablecoin, named HSBC RedCoin, for its Hong Kong-based PayMe app, which serves over 3.3 million users. The bank plans to make the coin available through both the PayMe and HSBC Hong Kong mobile banking apps. HSBC RedCoin would be the bank's initial foray into the realm of digital assets, following approvals granted by the Hong Kong Monetary Authority last April to both HSBC and a consortium led by Standard Chartered.
HSBC maintains optimism regarding the potential for retail usage of HSBC RedCoin, as a recent survey of more than 1,000 customers revealed that 74% of participants identified at least one use case for stablecoins. The most frequently cited use case was digital asset trading and tokenized investments, chosen by 57% of respondents, while person-to-person transfers (53%) and cross-border remittances (52%) ranked second and third, respectively.
Notably, 60% of respondents correctly identified a stablecoin as a fiat-backed digital asset, highlighting a good understanding of the technology. However, 26% of respondents mistakenly believed stablecoins to be government-issued, a misconception that HSBC clarified as untrue, as stablecoins are issued by licensed entities regulated by the Hong Kong Monetary Authority.
Maggie Ng, CEO of HSBC Hong Kong, emphasized the strong interest among Hongkongers in embracing digital assets, stating that HSBC RedCoin represents a natural progression for the bank. She added that the incorporation of HSBC's corporate color into the name symbolizes the bank's long-standing presence in Hong Kong, which dates back to 1865 and includes a customer base of 7 million.
HSBC's CEO outlined that the launch of the stablecoin is merely the beginning, with the bank intending to support Hong Kong's financial innovation while ensuring the security, trust, and simplicity that characterize HSBC's services. The bank plans to roll out HSBC RedCoin in phases, initiating with everyday use cases such as person-to-person and person-to-merchant payments.
Subsequently, HSBC will expand the stablecoin's functionality to encompass wholesale and corporate banking applications. The lender has not provided a timeline for these phases but pledged to launch an extensive education series, focusing on scam prevention and redemption procedures for the stablecoin.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
