HSBC has named its planned Hong Kong stablecoin HSBC RedCoin ahead of a phased rollout starting with everyday payments.
The rollout will begin with person-to-person transfers and merchant payments before expanding to wholesale corporate and institutional uses.
The bank will also launch a public education series in Hong Kong covering scam prevention and how stablecoins can be redeemed through its banking apps, website and social media channels.
“Today, we are naming our Hong Kong stablecoin to reflect our heritage: HSBC RedCoin. Launching our coin is just the beginning.
Our goal is to support Hong Kong’s financial innovation, underpinned by the security, trust and simplicity that define HSBC.”
said Maggie Ng, CEO and Head of Retail Banking and Wealth, Hong Kong, HSBC.
An HSBC survey of more than 1,000 local customers found that 74 percent recognised at least one stablecoin use case.
Digital asset trading and tokenised investments led at 57 percent, followed by person-to-person transfers at 53 percent.
Cross-border remittances and merchant payments each drew 52 percent.
While 60 percent correctly defined stablecoins as fiat-backed digital assets, 26 percent assumed they were government-issued and 10 percent viewed them as interest-bearing.
HSBC noted that Hong Kong’s current regulatory framework does not include interest payments.
Respondents also expressed concerns about security, fraud and regulatory clarity.
Clearer regulation topped the factors that would build confidence at 62 percent, followed by education at 55 percent, fraud protection at 53 percent, easy conversion to cash at 51 percent and reserve transparency at 39 percent.
Featured image: Edited by Fintech News Hong Kong, based on image by HSBC