Wallet access and payments
PayMe users will be able to activate RedCoin wallets in the days following the launch, according to The Block. The South China Morning Post reported that users must update the app, but do not need to open another account or maintain a minimum balance.
HSBC says RedCoin supports payments directly to other users and merchants on PayMe. The network includes more than 100,000 merchants; that is a measure of its reach, not a count of completed RedCoin transactions. The bank has not said that all 3.3 million users activated wallets on launch day.
Before the rollout, nearly 100 HSBC employees tested issuance, wallet activation and direct transfers. Lawrence Li, head of consumer banking products at HSBC Hong Kong, told media ahead of the launch: "The top priority in the first phase is to keep the service stable, not add burden to customers, and gain their trust."
RedCoin is denominated in Hong Kong dollars and designed for digital payments, with holders able to exchange it for the reference currency. It is distinct from a regular bank deposit: Crypto.news reported that the stablecoin wallet falls outside Hong Kong's deposit protection scheme. HSBC says the digital assets are held through HSBC Digital Assets Custody.
Two licensed issuers
HSBC operates RedCoin under a stablecoin issuer license from the Hong Kong Monetary Authority (HKMA). The regulator's register lists HSBC as FRS02 and Anchorpoint Financial Limited, a Standard Chartered-backed joint venture, as FRS01. Both licenses became effective on April 10, 2026. HSBC also identifies FRS02 on its RedCoin page.
The two approvals followed a first round of applications from 36 entities, submitted by the September 30, 2025, deadline. The HKMA said any future approvals would leave the overall number of licenses "very limited".
Anchorpoint began distributing its HKDAP stablecoin to institutional users on a limited basis in August 2026, according to earlier reporting by IDNFinancials.
The lead-up to RedCoin
HSBC announced the name "HSBC RedCoin" on September 30, 2026. Alongside that announcement, it cited an online survey conducted June 18-28 among 1,060 HSBC customers ages 18-64. Of those surveyed, 74% recognized at least one use case for stablecoins.
The bank's earlier digital asset offerings include bonds issued through HSBC Orion and gold tokens for retail customers. HSBC says Orion has supported more than $8.3 billion in digitally native bond issuance worldwide since its 2023 launch. HSBC Gold Token, introduced in 2024, had recorded 390,000 trades worth a total of $2.5 billion by the end of August 2026.
HSBC also says it has participated in the HKMA's digital asset and currency initiatives since 2022, including the e-HKD+ Pilot Programme and Project Ensemble.
"Money, assets, and information are shifting from traditional infrastructure to always-on, data-rich, and increasingly programmable digital networks," HSBC Hong Kong CEO Maggie Ng said in the bank's launch announcement.
Banking app and investment plans
HSBC's next planned step is to bring the RedCoin wallet into its Hong Kong banking app before the end of 2026. Users will later be able to subscribe to tokenized investment products, including a new unit class of Hong Kong dollar-denominated money market funds.
"This is just the beginning," said John O'Neill, HSBC's managing director for digital assets and currencies, in the company's launch statement. He said the bank also plans to extend its services to corporate and institutional needs.
