HSBC’s Hong Kong dollar-backed RedCoin stablecoin attracted 50,000 users within ten days of its October 23 launch, highlighting early demand for bank-issued digital currencies. The South China Morning Post reported that HSBC Group CEO Georges Elhedery announced the milestone during Hong Kong FinTech Week on November 2.
RedCoin Adoption Grows Through PayMe
RedCoin, identified by ticker RCHKD, operates through HSBC’s PayMe application, which serves more than 3.3 million users. The stablecoin enables eligible customers to transfer funds and purchase goods from participating merchants. PayMe supports payments across a network exceeding 100,000 merchants.
Customers can activate wallets without opening additional bank accounts or maintaining minimum balances. Elhedery outlined HSBC’s longer-term ambitions, stating, “Of course, our target is multimillion users.” However, HSBC has not disclosed transaction volumes or the number of customers actively making payments.
HSBC Reports HKD 88.75 Million in Reserves
HSBC says that RedCoin circulation reached HKD 87.75 million on November 2, increasing HKD 6.75 million over seven days. The bank reported HKD 88.75 million in cash reserves, exceeding circulating tokens by approximately HKD 1 million.
RedCoin targets a one-to-one exchange rate with the Hong Kong dollar and allows redemption into fiat currency. The stablecoin uses Hyperledger Besu technology on a private, permissioned blockchain rather than an unrestricted public network. HSBC publishes daily reserve information and expects its first independent reserve attestation after 2026’s fourth quarter.
Hong Kong Licensing Supports Expansion
RedCoin operates under Hong Kong’s stablecoin licensing framework, introduced in August 2025. According to the Hong Kong Monetary Authority, HSBC and Anchorpoint Financial received issuer licenses in April 2026.
HSBC Hong Kong CEO Maggie Ng confirmed the product’s capabilities: “Merchant payments and wallet top-ups are already live.” The bank plans to extend access through its mobile banking application and support tokenized investments, including money-market funds. No rollout date has been confirmed.
AI Institute Adds Technology Investment
Separately, HSBC announced an AI and Emerging Technology Institute scheduled to begin operating in early 2027. Its research will cover fraud detection, blockchain and post-quantum cryptography. Sustained RedCoin adoption will depend on payment activity.
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