HSBC has launched HSBC RedCoin, its first stablecoin, on the PayMe mobile payment app in Hong Kong.

Denominated in Hong Kong dollars, the stablecoin carries the ticker RCHKD.

The bank issues it under a stablecoin issuer licence from the Hong Kong Monetary Authority (HKMA).

With the launch, more than 3.3 million PayMe users can activate a stablecoin wallet within the app.

Users can then send instant peer-to-peer payments and pay at more than 100,000 merchants, according to the bank.

As a result, customers can make stablecoin payments without leaving an app they already use.

HSBC added that the stablecoin relies on the bank’s own technology and security systems.

In addition, the bank said the stablecoin enables programmable payments that are available around the clock.

According to HSBC, this aims to support the development of Hong Kong’s digital asset sector.

Over the coming months, the bank plans to add stablecoin wallet functions to the HSBC HK Mobile Banking app.

During the same period, it intends to allow customers to subscribe to tokenised investments using HSBC RedCoin.

Following these steps, HSBC plans to extend the stablecoin to wholesale use cases for corporate and institutional clients.

Featured image: Edited by Fintech News Hong Kong, based on image by HSBC Hong Kong via its LinkedIn.