HSBC launches Hong Kong dollar stablecoin for retail payments

HSBC is rolling out RedCoin wallets to PayMe users, with plans to support tokenized investment subscriptions and expand into institutional uses. HSBC has launched its first Hong Kong-dollar stablecoin, RedCoin (RCHKD), for transfers and merchant payments through its PayMe app. More than 3.3 million PayMe users will be able to activate stablecoin wallets in the app in the coming days, the bank >announced Friday. RedCoin is designed to be redeemable one-for-one for Hong Kong dollars. HSBC Digital Assets Custody provides safekeeping services for the stablecoin. The consumer rollout follows Anchorpoint’s rollout of its HKDAP stablecoin through HashKey Exchange in August, which initially targeted eligible institutions and professional investors. 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 Hong Kong’s stablecoin regulatory framework. The bank said it plans to introduce RedCoin wallets to its HSBC HK Mobile Banking App later this year, allowing customers to subscribe to tokenized investment products, including a new share class of its Hong Kong dollar money market fund. HSBC also plans to expand RedCoin into wholesale corporate and institutional applications. Related: Malaysia, Thailand join Singapore’s cross-border stablecoin push