HSBC Puts a Hong Kong Dollar Stablecoin in the Hands of PayMe Users

HSBC has launched its first Hong Kong dollar stablecoin, RedCoin, through the PayMe app, opening the door for more than 3.3 million users to hold and send digital money. The token is designed to be redeemable one to one for Hong Kong dollars, and HSBC Digital Assets Custody will handle its safekeeping.

Users will be able to activate stablecoin wallets inside PayMe over the coming days. For now, the coin can be used for transfers and for payments at merchants that accept it.

Tokenized Investments Are Next

Later this year, the bank plans to bring RedCoin wallets into its HSBC HK Mobile Banking App. Customers there will be able to subscribe to tokenized investment products, including a new share class of the bank’s Hong Kong dollar money market fund.

Following Hong Kong’s First Stablecoin Licenses

HSBC received its stablecoin issuer license in April, alongside Anchorpoint Financial, a joint venture backed by Standard Chartered, Animoca Brands and HKT. The two were the first companies approved under the city’s stablecoin framework. Anchorpoint started distributing its HKDAP token through HashKey Exchange in August, though that launch was aimed at institutions and professional investors rather than everyday users.