HSBC's RedCoin stablecoin draws 50,000 users in first week

What happened

HSBC's Hong Kong dollar-backed stablecoin, RedCoin, has attracted 50,000 users in just over a week since its October 23 launch, according to figures disclosed by the bank's group chief executive. Georges Elhedery shared the number on November 2 during a panel discussion at Hong Kong FinTech Week, the South China Morning Post reported, as covered by Crypto.news and Bitcoin.com News.

The token, which trades under the ticker RCHKD, is being introduced through PayMe, HSBC's payment application, which the bank says serves more than 3.3 million users in Hong Kong. Eligible customers can open a RedCoin wallet inside PayMe without opening another bank account or keeping a minimum balance, and can send funds to other users and pay at participating merchants.

Elhedery described the early response as encouraging but said the bank has much larger goals. "Of course, our target is multimillion users," he said, according to the reports. He attributed the initial adoption to reliable technology and the regulatory framework established by the Hong Kong Monetary Authority.

HSBC Hong Kong CEO Maggie Ng said merchant payments and wallet top-ups were already operational. "Merchant payments and wallet top-ups are already live, and we are encouraged by early customer usage," she said, according to Bitcoin.com News. The bank has not said how many of the 50,000 users have completed payments or how often they use the token.

Why it matters

RedCoin is one of the first stablecoins issued under Hong Kong's licensing regime, which took effect in August 2025, and its early uptake offers an early signal on whether regulated, bank-issued digital money can gain traction with retail customers. Unlike stablecoins that circulate freely on public networks, RedCoin runs on a private, permissioned blockchain built with Hyperledger Besu technology, with transfers currently limited to approved channels. That design keeps the token inside HSBC's payment infrastructure, giving the bank control over how it is used while it builds out services.

The launch also positions HSBC in a developing competition among licensed issuers in the city. Anchorpoint Financial, a consortium backed by Standard Chartered, Animoca Brands and HKT, received one of the first two issuer licenses alongside HSBC and has begun a limited institutional rollout of its HKDAP stablecoin, with plans for retail access but no confirmed launch date.

What the data shows

HSBC publishes daily circulation and reserve information alongside weekly unaudited statements. On November 2, the bank reported HK$87.75 million in circulating RedCoin and HK$88.75 million in reserve assets, all held in cash, leaving reserves about HK$1 million above the tokens in circulation. Circulating supply had grown by HK$6.75 million over the preceding seven days, according to the figures. The bank expects to release its first independent reserve attestation after the fourth quarter of 2026.

Background

HSBC and Anchorpoint Financial received the city's first two stablecoin issuer licenses on April 10, 2026, according to the HKMA register. HSBC launched RedCoin in phases to PayMe customers, starting with retail payments before moving toward additional services. The bank has said it intends to make the token available through its HSBC HK Mobile Banking application and to let customers subscribe to tokenized investment products, including money-market funds, using the stablecoin. No confirmed timetable has been announced for making RedCoin available to every HSBC and Hang Seng Bank customer.

Separately at Hong Kong FinTech Week, HSBC announced plans for a global AI and Emerging Technology Institute in the city, expected to begin operating in early 2027 and eventually based in the Northern Metropolis. The bank said the Hong Kong University of Science and Technology would be its main academic partner, and that research would cover areas including AI security, fraud detection, post-quantum cryptography and blockchain technology.

What to watch

How much of the 50,000-user figure translates into recurring payments is not yet known, and HSBC has not disclosed usage frequency. The next markers to watch include the rollout to the HSBC mobile banking app, the introduction of tokenized investment subscriptions, and the timing of the first independent reserve attestation. Anchorpoint's progress toward retail access for HKDAP, including its partnership with the Solana Foundation for native minting and redemption, will also shape how the licensed stablecoin market in Hong Kong develops.

Questions readers ask