HSBC launches HKD stablecoin for retail payments
HSBC has launched its first Hong Kong dollar stablecoin, RedCoin (RCHKD), which can be used for transfers and merchant payments via its PayMe app.
On Friday, the company announced that over 3.3 million PayMe users will be able to enable a stablecoin wallet in the app within the coming days.
RedCoin is designed to be redeemable at a 1:1 rate against the Hong Kong dollar. HSBC Digital Assets Custody will provide custody services for this stablecoin.
This consumer-facing launch follows Anchorpoint’s introduction of its HKDAP stablecoin on HashKey Exchange in August, which was initially available to qualified institutional and professional investors.
HSBC received a stablecoin issuer license in April; Anchorpoint Financial was approved at the same time. The latter is a joint venture supported by Standard Chartered, Animoca Brands, and Hong Kong Telecom. These two companies are the first to be approved under Hong Kong’s stablecoin regulatory framework.
HSBC stated that it plans to introduce the RedCoin wallet into its HSBC HK Mobile Banking App later this year, enabling customers to subscribe to tokenized investment products, including a new share class of its Hong Kong dollar money market fund.
HSBC also plans to expand RedCoin to wholesale applications for enterprises and institutions.
Related reading: Malaysia and Thailand join Singapore in advancing cross-border stablecoins