A red token for the Hong Kong dollar. HSBC has named the stablecoin it is preparing for the Hong Kong market RedCoin. The bank plans to first integrate it with PayMe and its mobile application for peer-to-peer transfers and merchant payments, before expanding it to businesses and institutional clients.
The project already has the necessary authorization. The Hong Kong Monetary Authority (HKMA) granted HSBC an issuer license in April 2026, but the stablecoin is not yet available.
Key Points
HSBC prepares a stablecoin backed by the Hong Kong dollar called RedCoin
The bank obtained its license from the HKMA in April 2026
The first uses will concern transfers between individuals and merchant payments
According to an HSBC survey, 74% of customers surveyed identify at least one possible use for a stablecoin
HSBC RedCoin, from banknote to stablecoin
HSBC has a long relationship with the Hong Kong currency. It is one of the three establishments authorized to issue Hong Kong banknotes, with Standard Chartered and Bank of China (Hong Kong). Its first local cuts date back to 1865.
The name RedCoin refers to the visual identity of the bank, in particular its red logo. HSBC plans a gradual rollout. Peer-to-peer transfers and merchant settlements will be the first phase, using PayMe and the HSBC HK Mobile Banking app. Professional, institutional and wholesale payment uses will come next.
The bank obtained the FRS02 license issued by the HKMA in April. RedCoin must be fully backed by high-quality liquid assets and remain redeemable at par with the Hong Kong dollar. A unit must therefore be able to be exchanged for one Hong Kong dollar.
The framework is based on the Stablecoins Ordinance, which entered into force in August 2025. The text notably imposes complete coverage of tokens, reserve management procedures and reimbursement at par generally processed within one business day. It also provides for a minimum capital of HK$25 million for relevant non-bank issuers.
HSBC specifies, however, that RedCoin has not yet been issued and warns against tokens that already use its name without authorization.
Stablecoin: HSBC customers favor investments and payments
To measure market expectations, HSBC surveyed 1,060 Hong Kong customers aged 18 to 64 online between June 18 and 28, 2026. Among them, 74% identified at least one possible use for a stablecoin.
Digital asset trading and tokenized investments came first, cited by 57% of respondents. Peer-to-peer transfers follow at 53%, while merchant payments and cross-border money transfers each reach 52%.
These particularly concern the numerous foreign domestic workers based in Hong Kong, most of whom come from the Philippines and Indonesia. A regulated stablecoin can reduce certain intermediate steps and speed up transfers, without alone guaranteeing the disappearance of conversion or withdrawal fees in the recipient country.
Competition is also taking place. Standard Chartered is participating in Anchorpoint, a joint venture formed with Animoca Brands and HKT to prepare a Hong Kong dollar stablecoin. Bank of China (Hong Kong) also works in this market, while the projects of Ant Group and JD.com have been suspended at the request of mainland Chinese authorities.
