# HSBC RedCoin reaches HK$80.8 million as PayMe rollout begins Author: Hatice Ertaş Language: English Published: 2026-10-25T17:52:03+03:00 Updated: 2026-10-25T17:52:03+03:00 ![A red token bearing the HSBC symbol above a payment terminal on a shop counter, a conceptual RedCoin image.](https://kriptometa.com/uploads/hsbc-redcoin-payme-de-dolasim-milyon-hkd-b7f3eecc848c_article.webp) ## Key takeaways - HSBC launched RedCoin through PayMe on October 23. The platform has more than 3.3 million users; that figure is not an active RedCoin user count. - HSBC reported HK$80,814,137.65 in circulation against HK$81,814,137.65 in cash reserves on October 25. Its first independent reserve attestation is expected after Q4 2026. - RedCoin pays no interest and has no deposit protection. HSBC plans mobile banking access and use with tokenised fund shares later in 2026. RedCoin can be redeemed one-for-one for Hong Kong dollars and used for transfers and merchant payments through PayMe. HSBC reports HK$80.8 million in circulation on October 25 as wallet access opens gradually. HSBC reported HK$80,814,137.65 of its Hong Kong dollar [stablecoin](https://kriptometa.com/en/glossary/stablecoin) RedCoin in circulation on [October 25](https://www.hsbc.com.hk/stablecoins/). The bank launched the token, identified as RCHKD, through PayMe on October 23. Eligible Hong Kong customers will be able to send money to friends and pay businesses using a separate wallet opened within the app. In its [launch announcement](https://www.about.hsbc.com.hk/news-and-media/hsbc-redcoin-launches-today), HSBC said it would activate users’ wallets over the following days. The service can reach PayMe’s more than 3.3 million users for payments across over 100,000 merchants. HSBC has not disclosed how many people have activated a RedCoin wallet or how many payments they have made with it. It says nearly 100 employees took part in a pre-launch pilot covering wallets, token minting and live payments. ## October 25 reserves exceed circulation by HK$1 million HSBC’s daily disclosure dated October 25, 2026. All amounts are Hong Kong dollars and are reported by the bank. | Measure | Amount | |---|---| | Par value of RedCoin in circulation | HK$80,814,137.65 | | Market value of reserve assets | HK$81,814,137.65 | | Cash portion of reserves | HK$81,814,137.65 | | Increase in circulation over seven days | HK$79,545,968.29 | The difference between reserves and circulation is HK$1 million. All reported reserves are cash; the seven-day change measures neither payment volume nor user numbers. HSBC has not yet published an [independent external attestation report](https://kriptometa.com/en/glossary/reserve-attestation-vs-audit). It expects the first report after the fourth quarter of 2026. Under its [reserve management policy](https://www.hsbc.com.hk/content/dam/hsbc/hk/docs/mobile/stablecoin-reserve-assets-policy.pdf), HSBC values assets daily and compares them with the par value of outstanding tokens. HSBC receives reserve income and bears losses, while holders receive no interest. It may move excess assets to its own account only if full backing and its internal reserve buffer remain intact. Independent auditors will check the reserves’ value, holdings and ability to cover outstanding tokens on the reporting period’s last business day and at least one randomly selected business day. ## No transfers between the two apps’ wallets RedCoin is offered only in Hong Kong through HSBC’s official distribution channels. Customer checks and each app’s eligibility requirements apply. HSBC does not offer the token through third-party platforms or [crypto exchanges](https://kriptometa.com/en/best-crypto-exchanges). The stablecoin wallet in PayMe is kept separate from the app’s ordinary Hong Kong dollar balance. Buying one RedCoin debits HK$1 from the same channel. A PayMe user can spend the token balance at existing PayMe businesses without the merchant separately enabling RedCoin acceptance. Under the [terms and conditions](https://www.hsbc.com.hk/content/dam/hsbc/hk/docs/mobile/stablecoin-terms.pdf), HSBC redeems tokens into Hong Kong dollars or the relevant payment currency for merchants requesting payment in money rather than tokens. Accepting PayMe does not require a business to hold RedCoin. HSBC charges no fees for purchases, redemptions, person-to-person transfers or merchant payments, according to its [October 23 white paper](https://www.hsbc.com.hk/content/dam/hsbc/hk/docs/mobile/stablecoin-whitepaper.pdf). The bank may change charges on notice. It normally executes instructions immediately, so cancellation may be impossible once a transaction begins. For a valid redemption, HSBC buys back each token for HK$1 and credits the money, less any applicable fees, to the customer’s account or wallet in the same channel. HSBC undertakes to fulfil a valid redemption request immediately and no later than one business day. HSBC may nevertheless delay or refuse instructions because of missing information, transaction limits, suspected fraud, legal requirements or technical disruption. The bank also warns that difficulty selling reserves or exceptional redemption demand could delay or prevent payment. **PayMe and HSBC HK wallets are separate.** Under HSBC’s announced arrangements, transfers between PayMe and the planned mobile banking stablecoin wallet are not supported. Customers also cannot freely withdraw RedCoin from the permissioned network to a public crypto wallet. ## HSBC controls the network and private keys RedCoin uses the [ERC-20 token standard](https://kriptometa.com/en/glossary/token-networks-standards) but does not run on the public Ethereum mainnet. HSBC operates a private, permissioned Hyperledger Besu network. Every validator node is owned and managed by the bank, with no outside validator participation. Authorised nodes agree on transactions using a consensus method called QBFT. [Smart contracts](https://kriptometa.com/en/glossary/smart-contract) include lists of wallets permitted to transact and functions that can freeze activity when required. HSBC says it would need Hong Kong Monetary Authority approval and anti-money-laundering and transaction-monitoring controls before connecting to public blockchains. No opening date for such a connection has been announced. HSBC holds tokens for customers in pooled [custody wallets](https://kriptometa.com/en/glossary/custodial-non-custodial-wallet). Each customer’s entitlement is tracked separately in the bank’s internal records and the relevant app; the displayed wallet is not an independent bank account. Private keys are generated and stored in the bank’s hardware security modules. Customers do not manage their own keys. HSBC says it cannot lend or pledge their tokens except on their instructions, under the contract or as required by law. ## No deposit protection; fund access is still planned Reserves are held separately in a trust for token holders. HSBC Institutional Trust Services (Asia) Limited acts as trustee and HSBC as custodian. If HSBC becomes insolvent, holders can direct a sale of reserves under the terms for proportionate payment and claim any shortfall against the issuer. If the cash custodian becomes insolvent, however, the trustee’s claim on cash is unsecured, as is a holder’s claim against the issuer for a shortfall after reserves are realised. RedCoin pays no interest or yield and is not covered by Hong Kong’s Deposit Protection Scheme. HSBC identifies [custody, liquidity, smart-contract and network-interruption risks](https://kriptometa.com/en/stablecoin-risks-checklist). Later in 2026, HSBC plans to add the RedCoin wallet to its HSBC HK Mobile Banking app and enable use with a forthcoming Hong Kong dollar share class of a tokenised money market fund. [Tokenising](https://kriptometa.com/en/glossary/rwa-tokenization) fund shares records an investor’s ownership in digital-token form; it does not make RedCoin itself interest-bearing. Features and investment products remain subject to regulatory approvals. The bank has given no firm timetable for corporate use cases. > “This is only the beginning.” John O’Neill, HSBC’s Managing Director of Digital Assets and Currencies, in the October 23 announcement. Issuer The Hongkong and Shanghai Banking Corporation Limited holds stablecoin licence FRS02. The HKMA announced that licences for HSBC and Anchorpoint Financial took effect on [April 10, 2026](https://www.info.gov.hk/gia/general/202604/10/P2026041000471.htm). [CoinDesk’s October 23 post on the RedCoin launch](https://x.com/CoinDesk/status/2113566481707585920) CoinDesk reported on PayMe payments and HSBC’s planned fund use in its October 23 post. For historical background on reserves and issuer risk, HSBC’s [DigiTalks discussion at 03:23–05:27](https://www.youtube.com/watch?v=ZDNrWKZRy2A&t=203s) features James Pomeroy explaining why users of fiat-backed stablecoins depend on the issuer’s reserve assets. The programme was originally released on March 21, 2023, according to its description, and uploaded to HSBC’s official YouTube channel on March 19, 2025.