HSBC has started a phased rollout of its RedCoin stablecoin to PayMe users in Hong Kong. It is the first retail launch of a licensed bank-issued stablecoin under the city's Stablecoins Ordinance. The bank also plans to add tokenized investment products to its mobile banking app.
HSBC RedCoin has launched for more than 3.3 million PayMe users in Hong Kong, the first retail rollout of a licensed bank-issued stablecoin under the Stablecoins Ordinance framework.
The phased launch began on October 23, 2026. Users update the PayMe app and activate a RedCoin wallet, with no extra account opening required.
PayMe users can send and spend Hong Kong dollars
There is no minimum balance. Users can send and receive Hong Kong dollars instantly via peer-to-peer transfers or pay at over 100,000 merchants already on the platform.
Lawrence Li, head of PayMe, described the rollout as deliberate. According to CoinGape, he said: "The key priority in the first phase is ensuring stable service" while avoiding extra burdens for customers and winning their trust.
Merchant settlement will initially follow existing Hong Kong dollar schedules, and faster timelines are expected in later phases.
Tokenized funds come next
HSBC plans to fully integrate RedCoin into its Hong Kong mobile banking app before year-end. Customers will then be able to subscribe to tokenized investment products, starting with a Hong Kong dollar money market fund, from as little as HK$100 (approximately US$12.75).
Tokenized gold and third-party funds are planned to follow. John O'Neill, HSBC's managing director of digital assets and currencies, pointed to near-instant settlement and lower entry thresholds compared with settlement that can take days for traditional investments.
HSBC ties the launch to a wider tokenization push
Maggie Ng, CEO of HSBC Hong Kong, placed the launch within a broader tokenization strategy. The bank has issued US$8.3 billion in tokenized bonds globally.
HSBC has also recorded US$2.5 billion in tokenized gold trading value in Hong Kong alone.
Source: CoinGape
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