HSBC RedCoin (RCHKD) is 100%-backed by liquid assets held in segregated accounts.
RedCoin is HSBC’s first official stablecoin, pegged 1:1 to the Hong Kong dollar (HKD). The crypto project officially launched on October 23, 2026. It is Hong Kong’s second licensed stablecoin, following Anchorpoint’s HKDAP token, but the first designed from the outset for the mass retail market.
The new token is issued under Hong Kong’s Stablecoins Ordinance, under licence FRS02 granted by the Hong Kong Monetary Authority (HKMA). HSBC’s Digital Assets Custody division provides token storage and custody services. As the tokens operate within the bank’s closed ecosystem, users undergo full identity verification (KYC), helping mitigate the risk of financial crime.
At launch, the token is integrated into PayMe by HSBC, a popular payment app with more than 3.3 million users. Initially, the next functions are available:
- P2P transfers between individuals within the app.
- P2M ability to pay with the stablecoin at more than 100,000 retail outlets and merchants that accept PayMe.
RedCoin wallets share the same limits as regular fiat wallets in PayMe, with no additional restrictions.
By the end of 2026, however, HSBC plans to significantly expand the token’s functionality. The organization envisions full banking integration, so users should soon expect RedCoin support to be added to the main HSBC HK Mobile Banking App.
Users will also be able to purchase tokenized assets directly with RedCoin, including new classes of HSBC’s HKD money market funds, with a minimum investment of HKD 100 and instant transaction settlement.
Furthermore, in the future, HSBC plans to expand RedCoin’s use to the corporate sector and wholesale interbank settlements.
Compared to Anchorpoint (HKDAP), RedCoin has a fundamentally different launch philosophy, technical architecture, and target audience. RedCoin was made immediately available to 3.3 million users through the PayMe app. Everyday users do not even need to understand how blockchain works. The asset operates within a familiar payment interface.
HKDAP, in turn is deployed on the Ethereum network. Its smart contract can be tracked via Etherscan, making it an open financial building block for DeFi and Web3. However, ordinary retail customers cannot yet simply start using it without completing compliance checks through partner distributors.
This way, RedCoin positions itself to reach Hong Kong’s mass retail market, leveraging PayMe’s vast user base, while Anchorpoint (HKDAP) offers a more flexible tool for crypto markets, institutional settlements, and integration with external Web3 applications.
