HSBC has officially named its forthcoming Hong Kong dollar stablecoin HSBC RedCoin, with payments set to anchor the token's initial rollout. In an official announcement published on September 30, 2026, the bank said the project will begin with person-to-person (P2P) transfers and merchant payments before moving into services.

First Phase Focused on P2P and Merchant Payments

RedCoin will be introduced in its first phase via HSBC's regular payment services. The initial use cases for the stablecoin will be person-to-person and person-to-merchant payments, and the bank will further roll out its use in the future for wholesale corporate and institutional applications.

Alongside the naming, a new survey of HSBC customers reveals high awareness of stablecoin use cases. The study was conducted online with 1,060 HSBC customers in Hong Kong aged 18 to 64, and was held from June 18 to June 28, 2026.

According to the South China Morning Post, the survey revealed that 74% of respondents identified at least one use case for a stablecoin. Digital asset trading and tokenized investments ranked at 57% among respondents, while P2P transfers came in at 53% and cross-border remittances at 52%. Among those surveyed, 52% said they recognized merchant payments.

Familiarity with the term itself was more limited. Among the customers surveyed, 60% correctly identified stablecoins as fiat-backed digital assets. However, 26% believed that stablecoins were government-issued, and 10% thought they were interest-bearing products. The distinction matters because stablecoins such as RedCoin are designed to track the value of a reference currency — in this case, the Hong Kong dollar — rather than to pay interest.

According to HSBC, customer confidence is linked to security, fraud protection, and regulatory clarity. In the survey, support for stronger regulatory clarity stood at 62%, while improved fraud protection received 53% and enhanced education received 55%.

The results are helping to inform HSBC's planned strategy for introducing RedCoin to its customers. The bank intends to roll out the feature alongside information on stablecoins, meaning customers will be provided with guidance on scams and redemption.

Launch Planned Through PayMe and HSBC HK Mobile App

RedCoin will be denominated in Hong Kong dollars, HSBC said. The bank plans to launch the stablecoin during the second half of 2026. However, HSBC has not yet issued any stablecoins in Hong Kong to date.

At launch, the stablecoin will be available only through PayMe and the HSBC HK Mobile App, meaning the first rollout will be tightly integrated with HSBC's existing customer platforms. PayMe is HSBC's widely used consumer payments app in Hong Kong, a distribution route that puts a bank-issued, Hong Kong dollar-denominated token in front of everyday users from day one. The bank said more updates will be provided as the launch continues.

In April 2026, HSBC was granted a new license to engage in its intended stablecoin operations. The license follows the rollout of Hong Kong's Stablecoins Ordinance, which took effect in August 2025 and established a licensing regime for fiat-referenced stablecoin issuers under the oversight of the Hong Kong Monetary Authority. The bank's announcement places RedCoin in the midst of Hong Kong's emerging digital currency market. The phased approach will enable HSBC to start with familiar payment functions before broadening the token's reach.

The bank will also launch an educational series through its banking apps, website, and social media platforms. The campaign will center on scam prevention and clear redemption processes, addressing concerns raised by customers in HSBC's survey.

Maggie Ng, HSBC's Hong Kong Chief Executive Officer, said the stablecoin's name reflects the bank's heritage. She added that the project aims to support financial innovation while maintaining simplicity and trust.

HSBC Warns of Fraudulent Stablecoins

In addition, HSBC warned customers about fraudulent stablecoins claiming to be linked to the bank. The bank said it has nothing to do with those products, and customers were advised to beware of investment scams associated with them.

Overall, HSBC RedCoin represents the bank's strategy for stablecoin payments in Hong Kong dollars. The initial focus will remain on P2P and merchant transactions, and HSBC will expand the stablecoin into the corporate and institutional space as the project progresses. The markers to watch from here are the second-half 2026 launch window on PayMe and the HSBC HK Mobile App, and how the corporate and institutional phase takes shape as the bank provides further updates.