HSBC has launched RedCoin (RCHKD), a Hong Kong dollar stablecoin available through its PayMe app, making it the first bank issued retail stablecoin in Hong Kong. The coin is licensed under Hong Kong’s Stablecoins Ordinance and regulated by the HKMA.
At launch, PayMe’s 3.3 million users will be able to send stablecoins to each other and pay at more than 100,000 merchants. However, the more notable development is HSBC’s plan to let customers subscribe to tokenized investment products using RedCoin, starting with a share class of its long running HKD money market fund. That capability was not mentioned when HSBC unveiled the RedCoin brand in September.
One reason HSBC was able to go to market with a retail stablecoin ahead of its rival is Hong Kong’s requirement that every stablecoin holder be identified. HSBC’s closed loop model largely resolves that challenge, since PayMe users are already subject to bank KYC. Standard Chartered’s Anchorpoint joint venture, which launched a beta of its HKDAP stablecoin in August, initially restricted access to institutional and professional investors, a simpler proposition under the identification rules. The question for RedCoin is what the stablecoin layer adds for everyday users who can already perform the currently functionality through PayMe.
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