HSBC Adds Hong Kong Dollar Stablecoin RedCoin to PayMe

HSBC has added Hong Kong dollar-based stablecoin RedCoin to its mobile payments service PayMe.

Decrypt, a digital-asset news outlet, reported on October 24 that HSBC launched the RedCoin service on PayMe a day earlier. More than 3.3 million PayMe users will be able to activate the wallet function and use RedCoin within the next few days.

Users can send money to other users with RedCoin or pay for goods and services at more than 100,000 PayMe merchants.

HSBC obtained a stablecoin issuance license from the Hong Kong Monetary Authority in April. Hong Kong has operated a licensing regime for stablecoin issuers since August last year.

HSBC plans to expand RedCoin to its mobile banking application later this year. That will allow customers to invest in tokenized Hong Kong dollar money market funds, or MMFs.

John O’Neill, managing director for digital assets and currencies at HSBC, said he expects strong market interest in RedCoin. He added that the bank will also expand services for corporate and institutional investors.