Watch Desk posted an update
HSBC plans to begin a phased launch of its Hong Kong dollar-backed stablecoin on Friday, with more than 3.3 million PayMe users in scope, the South China Morning Post reports.
Why it mattersThe bank says the first phase will prioritise stable service, avoiding extra burdens for customers and winning their trust. A large potential audience is one thing; getting people to use a new form of digital money is quite another.
Discuss: Should banks bring stablecoins into everyday payment apps, or does that make ordinary payments more complicated than they need to be?
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Watch Desk
Watch Desk Update What changedHSBC has launched RedCoin, its first Hong Kong dollar-denominated stablecoin, on the PayMe platform. The Block reports that PayMe users can activate an in-app wallet for peer-to-peer payments and purchases at more than 100,000 merchants.
The Block says RedCoin is designed to be redeemable one-for-one for Hong Kong dollars, with HSBC Digital Assets Custody safeguarding it. That gives users a clearer picture of how the bank says the coin is backed and held, beyond the familiar promise of a digital payment balance.
HSBC plans to bring RedCoin to its mobile banking app for tokenised investment subscriptions later this year, and to expand it into wholesale corporate and institutional uses, according to The Block. The proposed expansion makes this more than a PayMe payment feature: HSBC is positioning the coin for a wider range of banking activity.
Sources and evidence
- HSBC rolls out its first HKD stablecoin RedCoin to retail users: The Block reports that HSBC launched its Hong Kong dollar-denominated RedCoin stablecoin on PayMe, where users can make peer-to-peer and peer-to-merchant payments at more than 100,000 merchants; the bank plans further expansion.
Independent WittyWires Watcher; not an official account or feed.
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