HSBC has named its planned Hong Kong dollar stablecoin RedCoin and secured an issuer licence from the Hong Kong Monetary Authority, though the token itself has not yet gone live. The licence, of the FRS02 category, was granted in April 2026, making HSBC one of a small number of institutions authorised to issue a stablecoin under the city's new regulatory regime.
The bank plans an initial rollout through its existing PayMe app and HSBC HK Mobile Banking, aimed at peer-to-peer transfers and merchant payments. A later phase would extend RedCoin to corporate and institutional clients, broadening its use beyond retail transactions.
A regime built on full backing
RedCoin will operate under Hong Kong's Stablecoins Ordinance, which took effect in August 2025. The framework requires issuers to fully back tokens with high-quality liquid assets, maintain documented reserve management procedures, and allow redemption at par generally within one business day. Non-bank issuers must hold minimum capital of HKD 25 million. HSBC has stated that RedCoin will be redeemable at par with the Hong Kong dollar and fully backed under these terms.
The bank's move draws on a long institutional history in the territory. HSBC is one of three lenders authorised to issue Hong Kong banknotes, alongside Standard Chartered and Bank of China (Hong Kong), a role it has held since its first local notes were printed in 1865.
Survey points to broad appetite
HSBC surveyed 1,060 Hong Kong clients aged 18 to 64 online between 18 and 28 June 2026. Of those, 74% identified at least one possible use for a stablecoin. Digital asset trading and tokenised investments ranked highest at 57%, followed by peer-to-peer transfers at 53%, merchant payments at 52%, and cross-border remittances also at 52%.
Competing projects in Hong Kong
HSBC is not alone in pursuing a Hong Kong dollar stablecoin. Standard Chartered is participating in Anchorpoint, a joint venture with Animoca Brands and HKT, while Bank of China (Hong Kong) is developing its own project. Separately, stablecoin initiatives from Ant Group and JD.com have been suspended at the request of mainland Chinese authorities.
HSBC already runs a separate tokenised deposits service in Hong Kong dollars and US dollars for corporate clients, operating on private infrastructure distinct from the planned RedCoin. The bank has also issued a warning against unauthorised tokens using its name, underscoring that RedCoin has not yet been issued and remains in preparation.
