HSBC names Hong Kong stablecoin RedCoin, plans P2P and merchant payments first
In brief
- HSBC named its planned Hong Kong stablecoin HSBC RedCoin in a Sept. 20 announcement.
- RedCoin will first support P2P and person-to-merchant payments, with corporate and institutional uses later.
- 74% of 1,000+ Hong Kong customers in an HSBC survey recognized a stablecoin use case.
- HSBC UK and six other UK banks are testing tokenized sterling deposits with live customers.
Payments first, institutions later
HSBC has set out the order of the rollout. Per the bank's Sept. 20 announcement, RedCoin starts with everyday uses (sending money between people and paying merchants) before it moves to corporate and institutional use cases.
The bank points to its own data. HSBC said a survey of more than 1,000 Hong Kong customers found that 74% recognized at least one stablecoin use case. In the same HSBC survey, 57% of respondents associated stablecoins with digital asset trading and tokenized investments, while 53% cited P2P transfers. Cross-border remittances and merchant payments were each recognized by 52%.
A knowledge gap HSBC wants to close
Not every customer understands what they'd be holding. HSBC said 60% of respondents correctly understood stablecoins as fiat-backed digital assets. Another 26% believed they were government-issued, and 10% saw them as interest-bearing.
HSBC plans to provide public education through its banking apps, its website and social media.
That campaign is meant to focus on scams and transparent redemption.
Tokenized deposits in the UK
RedCoin isn't the bank's only digital asset project. HSBC has been developing digital asset capabilities across markets, including stablecoin initiatives and tokenized financial products, Crypto Briefing reported.
In the UK, HSBC UK and six other major UK banks have begun testing tokenized sterling deposits in live customer transactions. The pilots run through UK Finance's Great British Tokenised Deposit initiative. They've looked at whether programmable payments can improve settlement and reduce transaction risks.
HSBC is doing two separate things here. It's building a planned stablecoin in Hong Kong, and it's testing tokenized commercial bank money in the UK alongside other banks.
Frequently asked questions
What is HSBC RedCoin?
HSBC RedCoin is the official name of HSBC's planned Hong Kong stablecoin, which the bank unveiled in a Sept. 20 announcement. HSBC said it will first support P2P and person-to-merchant transactions, with corporate and institutional uses to follow.
What did HSBC's Hong Kong stablecoin survey find?
HSBC surveyed more than 1,000 Hong Kong customers. It said 74% recognized at least one stablecoin use case and 60% correctly understood stablecoins as fiat-backed digital assets. Another 26% believed stablecoins were government-issued, and 10% viewed them as interest-bearing.
What is the Great British Tokenised Deposit initiative?
It's the UK Finance program HSBC UK and six other major UK banks are using to test tokenized sterling deposits in live customer transactions. The pilots have explored how programmable payments could improve settlement and reduce transaction risks.
