HSBC’s Hong Kong dollar-backed RedCoin stablecoin has attracted 50,000 users in just over a week since its October 23 launch, as the banking giant expands its digital payment services in Hong
HSBC’s Hong Kong dollar-backed RedCoin stablecoin has attracted 50,000 users in just over a week since its October 23 launch, as the banking giant expands its digital payment services in Hong Kong.
SummaryAccording to the South China Morning Post, HSBC Group CEO Georges Elhedery disclosed the figure on November 2 during a panel discussion at Hong Kong FinTech Week. He credited the city’s supportive regulatory environment for helping the bank introduce the product to retail customers.
The announcement followed RedCoin’s launch through PayMe, HSBC’s payment application serving more than 3.3 million users.
HSBC introduced RedCoin, trading under the ticker RCHKD, on October 23 as its first Hong Kong dollar-denominated stablecoin.
The token allows eligible PayMe customers to send money to other users and make purchases at participating merchants.
According to the bank’s launch announcement, customers can activate a RedCoin wallet directly through PayMe without opening another bank account or maintaining a minimum balance.
The application supports payments to more than 100,000 merchants, giving the stablecoin access to HSBC’s existing retail payment network.
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During Monday’s event, Elhedery described the early response as encouraging while identifying a much larger customer base as the bank’s objective.
“Of course, our target is multimillion users,” he said.
The executive attributed the initial adoption to reliable technology and the regulatory framework established by the Hong Kong Monetary Authority.
HSBC has not disclosed how many of the 50,000 users have completed payments or how frequently they use RedCoin.
As crypto.news previously reported, HSBC launched the stablecoin through a phased introduction to PayMe customers, with tokenized investment services scheduled for a later stage.
RedCoin is designed to maintain a value equal to one Hong Kong dollar, with holders able to redeem tokens for the corresponding fiat currency.
HSBC’s published reserve figures showed HK$87.75 million in circulating RedCoin on November 2.
The bank reported HK$88.75 million in reserve assets, consisting entirely of cash, leaving reserves approximately HK$1 million above circulating tokens.
Its figures showed that circulating supply had grown by HK$6.75 million over the preceding seven days.
HSBC publishes daily circulation and reserve information, alongside weekly unaudited statements.
The bank expects to release its first independent reserve attestation after the fourth quarter of 2026.
RedCoin operates on a private, permissioned blockchain using Hyperledger Besu technology, with transfers currently restricted to approved channels.
Unlike stablecoins circulating freely across public blockchain networks, RedCoin’s initial service operates within HSBC’s designated payment infrastructure.
Customers can use the token for transfers and purchases through PayMe, while additional services remain under development.
Alongside the adoption figures, HSBC announced plans to expand RedCoin access through its HSBC HK Mobile Banking application.
The bank intends to allow customers to subscribe to tokenized investment products, including money-market funds, using the stablecoin.
Earlier coverage of RedCoin’s launch detailed HSBC’s plans to introduce retail payment services before pursuing additional institutional applications.
On November 2, HSBC Hong Kong CEO Maggie Ng confirmed that merchant payments and wallet top-ups were already operational.
“Merchant payments and wallet top-ups are already live,” Ng said, describing the initial services available to customers.
HSBC has not announced a confirmed timetable for making RedCoin available to every HSBC and Hang Seng Bank customer.
The product operates under Hong Kong’s stablecoin licensing regime, which took effect in August 2025.
According to the HKMA register, HSBC and Anchorpoint Financial received the city’s first two stablecoin issuer licenses on April 10, 2026.
Anchorpoint, backed by Standard Chartered, Animoca Brands and HKT, began a limited institutional rollout of its HKDAP stablecoin in August.
The company has maintained plans for retail access but has not announced a firm launch date, according to earlier coverage of Anchorpoint.
During Hong Kong FinTech Week, HSBC announced plans to establish a global AI and Emerging Technology Institute in the city.
The institute is expected to begin operating in early 2027 and will eventually be based in Hong Kong’s Northern Metropolis.
HSBC said the facility would work with academic and technology partners, with the Hong Kong University of Science and Technology serving as its main academic partner.
Its research priorities include AI security, fraud detection, engineering improvements, post-quantum cryptography and blockchain technology.
The bank previously announced plans to double its Hong Kong AI specialist workforce to approximately 300.
HSBC expects the institute to support technology development across its banking operations, including work on detecting fraud involving AI-powered systems.
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