HSBC launches its first stablecoin for payments in Hong Kong
The bank said more than 3.3 million PayMe users will be able to activate an in-app wallet in the coming days and use RedCoin at more than 100,000 merchants.
HSBC has announced plans to launch its HK dollar-backed stablecoin, HSBC RedCoin, for more than 3.3 million PayMe app users in Hong Kong starting from Friday. This move aims to integrate digital currencies into the city's mainstream retail and investment markets. RedCoin will initially support peer-to-peer transfers and payments to merchants through the PayMe app and HSBC's Hong Kong mobile banking app.
Users can activate their HSBC RedCoin wallet without needing a minimum balance or completing an account-opening process. After updating the app, they can utilize the wallet for instant transfers, experiencing a seamless interface similar to the current PayMe service.
Lawrence Li, head of PayMe, emphasized that the primary objective during the launch phase is to provide a stable service, minimize customer burdens, and build trust. HSBC conducted an internal pilot, successfully testing the customer journey and confirming smooth integration and quick user adoption.
HSBC plans to fully integrate RedCoin into its Hong Kong mobile banking app by the end of the year. This integration will allow customers to subscribe to tokenized asset products, such as money-market funds, with a minimum investment of HK$100 (US$12.75). John O’Neil, managing director of digital assets and currencies at HSBC, highlighted that traditional investment settlement often takes days, but tokenized fund subscriptions enable instant settlement and reduce the entry barrier.
Additionally, HSBC intends to introduce gold tokens and third-party funds, with details on wholesale applications to be announced shortly. To boost RedCoin usage, HSBC will introduce cashback rewards and promotions with well-known shopping and dining brands in the future.
HSBC has previously supported the issuance of US$8.3 billion of digitally native bonds globally and tokenized gold with a traded value of US$2.5 billion. In the first phase, merchant settlement schedules will match those used for conventional HK dollar processing, enabling businesses to adopt the service without extra investment. Future updates are expected to enhance settlement speeds. The stablecoin wallet will share the existing limits with standard fiat HK dollar wallets in PayMe.
HSBC obtained its digital asset license from the Hong Kong Monetary Authority in April.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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