HSBC Launches RedCoin Stablecoin for 3.3 Million PayMe Users in Hong Kong

HSBC is bringing its Hong Kong dollar-backed RedCoin stablecoin to more than 3.3 million PayMe users starting October 23, 2026. The launch will allow customers to send money and pay merchants instantly, with no extra account requirements. 

The bank also plans to use RedCoin for tokenized investments starting from just HK$100.

HSBC Rolls Out RedCoin Through PayMe

On 30 September, HSBC introduced RedCoin in stages to avoid overloading its systems, with full access expected before the weekend. Users can activate their RedCoin wallets directly in PayMe without opening a new account or keeping a minimum balance.

In the first phase, RedCoin will support user-to-user transfers and payments to merchants. Its wallet will follow the same transaction and balance limits as regular Hong Kong dollar wallets in PayMe.

Lawrence Li, head of PayMe, said the bank wants to make the launch simple for customers.

“The key priority in the first phase is ensuring stable service, avoiding extra burdens for customers and winning their trust.” 

Further, HSBC said it tested the service with nearly 100 staff members before launch. The trial helped the bank test wallet setup and payments.

HSBC Plans HK$100 Tokenized Investments by Year-End

But payments are only the beginning. HSBC plans to integrate RedCoin into its Hong Kong mobile banking app before the end of 2026.

This will allow customers to invest in tokenized money-market funds instantly, starting with just HK$100, or approximately $12.75.

John O’Neill, HSBC’s managing director of digital assets and currencies, said traditional investment settlements can take days, while stablecoins can make the process instant.

“Traditional investment settlement can take days, but subscribing to tokenised funds through a stablecoin enables instant settlement and significantly lowers the threshold.”

The bank also plans to introduce tokenized gold and third-party investment funds later.

HSBC said it has already supported US$8.3 billion in digitally native bond issuance globally, while its tokenized gold products have recorded US$2.5 billion in cumulative trading value.

HSBC Eyes Retail Adoption After Hong Kong Stablecoin Approval

The launch follows HSBC’s receipt of its stablecoin issuer licence from the Hong Kong Monetary Authority in April 2026, alongside Anchorpoint, a venture backed by Standard Chartered, Animoca Brands, and HKT.

To encourage RedCoin spending, HSBC plans to introduce cashback rewards and promotions with popular shopping and dining brands.

For merchants, settlement schedules will initially remain the same as conventional Hong Kong dollar payments, avoiding additional costs or system changes.

By bringing RedCoin to millions of existing PayMe users, HSBC aims to make digital currencies easier to use for everyday payments and investments.