HSBC launches RedCoin stablecoin on PayMe in Hong Kong

HSBC launched its HKD stablecoin RedCoin on PayMe on Oct. 23, with in-app wallets set to roll out to more than 3.3 million users in the following days. The Hong Kong Monetary Authority licensed the token’s issuer in April, according to HSBC’s launch announcement.

What can PayMe users do with RedCoin?

Users will be able to send RedCoin to friends and family and pay merchants through PayMe, HSBC said. The bank said the app supports payments at more than 100,000 merchants.

The rollout is phased: HSBC said users would be able to activate wallets in the days after launch. The South China Morning Post reported that customers can use the wallet without a minimum balance or opening an additional account.

What is the token and who can use it?

RedCoin’s ticker is RCHKD, and the stablecoin is denominated in Hong Kong dollars, HSBC said. The bank said the initial retail service is on PayMe; it plans to add wallet functionality to its Hong Kong mobile banking app later this year.

HSBC said its issuer licence number is FRS02. Its launch announcement identifies The Hongkong and Shanghai Banking Corporation Limited, an HSBC Holdings subsidiary, as the licensed issuer.

What comes after payments?

HSBC plans to let customers subscribe to tokenised investment products using RedCoin, including a planned share class of the bank’s HKD money market fund. It also said it intends to expand into wholesale corporate and institutional uses.

The bank’s announcement did not give a date for the investment features or wholesale expansion. HSBC said the next planned step is to add the stablecoin wallet to the HSBC HK Mobile Banking App later this year.

Source material

• HSBC’s launch announcement — about.hsbc.com.hk