HSBC launches RedCoin through PayMe

HSBC has launched RedCoin, a Hong Kong dollar-backed stablecoin, through its PayMe payment platform, adding digital transfers and merchant payments to an app used by more than 3.3 million people. Wallet access is being phased in over the coming days, the bank said. Once activated, RedCoin wallets will allow PayMe users to send funds to one another and pay at more than 100,000 merchants. HSBC said the token is designed to be redeemable one-for-one for Hong Kong dollars. The 3.3 million figure represents PayMe’s user base, not the number of people who have activated RedCoin wallets; HSBC has not reported activation or transaction totals. The bank reported HK$80.58 million of RedCoin in circulation and HK$81.58 million in cash reserves as of October 23. HSBC said the reserves are held separately. Its first independent reserve attestation is expected after the fourth quarter of 2026, according to the bank’s reported plans. HSBC said RedCoin wallets are separate from bank accounts and are not covered by Hong Kong’s Deposit Protection Scheme. The bank also announced transaction discounts and RewardCash offers during the rollout, but did not specify their amounts or duration. The...