Crypto 0m ago 3 min read

HSBC Launches RedCoin Stablecoin, Plans HK$100 Tokenized Funds

HSBC has begun a phased rollout of HSBC RedCoin, its Hong Kong dollar-backed stablecoin, to more than 3.3 million PayMe users and about 100,000 merchants. The bank plans to add tokenized money market fund subscriptions from HK$100 to its mobile banking app before the end of 2026.

Shailaja Pathak
Shailaja Pathak

Oct 23, 2026  ·  3 min read

Key points

  • HSBC began a phased rollout of its first stablecoin, HSBC RedCoin, to more than 3.3 million PayMe users on Friday, October 23, 2026, supporting transfers and payments at roughly 100,000 Hong Kong merchants.
  • Each RedCoin is redeemable one-for-one for Hong Kong dollars and backed by segregated, high-quality liquid assets, issued under Hong Kong Monetary Authority licence FRS02.
  • HSBC plans to add RedCoin to its mobile banking app by year-end, letting customers subscribe to a tokenized money market fund from HK$100 (about US$12.75), with tokenized gold and third-party funds to follow.

HSBC began rolling out HSBC RedCoin, its Hong Kong dollar-backed stablecoin, to more than 3.3 million PayMe users on Friday, October 23, 2026. The phased launch makes the RedCoin stablecoin available for transfers between users and payments to roughly 100,000 merchants across Hong Kong.

The rollout builds on the stablecoin issuer licence HSBC received from the Hong Kong Monetary Authority in April, when the regulator approved its first two issuers from a pool of 36 applicants. HSBC named the token on September 30 and issues it through The Hongkong and Shanghai Banking Corporation under licence number FRS02.

Lawrence Li, head of PayMe, said the first phase prioritizes reliability over new features.

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

PayMe users can switch on a RedCoin wallet without a minimum balance or a separate account-opening step, then select it to send Hong Kong dollars instantly. HSBC expects every PayMe user to gain access before the weekend and said it staggered the rollout to avoid overloading its servers. Each token is redeemable one-for-one for Hong Kong dollars and backed by segregated, high-quality liquid assets, according to HSBC’s product terms.

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HSBC plans to integrate RedCoin into its Hong Kong mobile banking app before the end of 2026, allowing customers to subscribe to tokenized investment products with the stablecoin. The first offering will be a Hong Kong dollar money market fund with a minimum subscription of HK$100, about US$12.75. HSBC said tokenized gold and third-party funds would follow.

Maggie Ng, CEO of HSBC Hong Kong, framed the launch as an extension of the bank’s existing digital asset work, pointing to tokenized bonds and tokenized gold that she said the market had widely accepted. HSBC has issued about US$8.3 billion in digitally native bonds globally and recorded roughly US$2.5 billion in tokenized gold trading value in Hong Kong.

The mobile banking integration is the next milestone, and it will test whether HSBC’s customers move from everyday payments into yield-bearing tokenized funds inside an app they already use. Hong Kong’s Stablecoins Ordinance took effect on August 1, 2025, and the city has treated bank-issued tokens as a way to bring regulated digital money to retail users at scale.

Editorial Note: Reported and edited by the Crypto India Magazine editorial team. We use AI tools to assist with research and drafting; every article is reviewed and fact-checked by our editors.

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Shailaja Pathak

Shailaja Pathak

Shailaja Pathak is an editor, technology journalist, and Head of Operations at Crypto India Magazine (CIM). A research scientist and data driven analyst with a keen interest in technology, she covers the latest developments in AI and emerging technologies in India and beyond.

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