HSBC launches HKD stablecoin RedCoin on PayMe, enabling over 3.3 million users to open wallets for use.

On October 24, according to Decrypt, HSBC officially launched the Hong Kong dollar stablecoin RedCoin (RCHKD) on its payment app PayMe on Friday. Over the coming days, more than 3.3 million PayMe users will be able to activate relevant wallets to use RedCoin for transfers to friends or payments at over 100,000 merchants that accept PayMe.

Issued by HSBC and licensed by the Hong Kong Monetary Authority (HKMA), RedCoin is pegged 1:1 to the Hong Kong dollar. At launch, its circulating supply was approximately $10.2 million, with reserve assets of roughly $10.4 million held entirely in cash. The stablecoin operates on HSBC's proprietary private ledger rather than a public blockchain, is not classified as a bank deposit, and is not covered by the Hong Kong Deposit Protection Scheme.

HSBC plans to introduce RedCoin to Hong Kong mobile wealth management applications later this year and will enable customers to invest in tokenized shares of its Hong Kong dollar money market funds. John O'Neill, Managing Director of Digital Assets and Currency Business at HSBC, stated that enterprise and institutional-level use cases will be expanded in the future.