HSBC, one of the largest international banks, has unveiled HSBC RedCoin as the official name of its planned Hong Kong stablecoin.
The stablecoin will first support P2P and person-to-merchant transactions, with corporate and institutional uses to follow, the bank said in a Sept. 20 announcement.
The move is supported by a survey of more than 1,000 Hong Kong customers, 74% of whom recognized at least one stablecoin use case. The survey found that 57% of respondents associated stablecoins with digital asset trading and tokenized investments, while 53% cited P2P transfers.
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Cross-border remittances and merchant payments were each recognized by 52%. HSBC said 60% correctly understood stablecoins as fiat-backed digital assets, though 26% believed they were government-issued and 10% viewed them as interest-bearing.
HSBC also plans to provide public education through its banking apps, website and social media, with a focus on scams and transparent redemption.
HSBC has been developing its digital asset capabilities across markets, including stablecoin initiatives and tokenized financial products.
HSBC UK and its banking peers are testing tokenized sterling deposits in live customer transactions. The pilots, conducted through UK Finance’s Great British Tokenised Deposit initiative, explored how programmable payments could improve settlement and reduce transaction risks.