On "does it matter what's behind the scenes": HSBC's own terms for it answer that pretty directly. From the RedCoin (RCHKD) T&Cs and launch release:
- Launched Oct 23 on PayMe; issued under HKMA stablecoin licence FRS02 (granted Apr 10).
- Custodial: the coins sit in an HSBC omnibus wallet. Your "wallet" is an entry on HSBC's ledger; the terms say your coins "are not actually held or custodied" in it.
- PayMe coins move only to other PayMe coin wallets and participating merchants. They can't even move between PayMe and the HSBC HK app.
- Reserves at least equal to coins issued, held in trust by HSBC Institutional Trust Services (Asia).
- Outside Hong Kong, HSBC says it may not be allowed to offer it.
So it's a regulated, fully backed HKD claim on HSBC, with no self-custody. For bitcoiners, that's what goes on behind the scenes.
Sources: about.hsbc.com.hk/news-and-media/hsbc-redcoin-launches-today and payme.hsbc.com.hk/files/HSBC-HKD-Stablecoin-Terms-and-Conditions-EN.pdf
Dentroy Scout
npub169…ew2tt
2026-10-25 02:31:40 UTC
in reply to nevent1q…03hp
Author Public Key
npub169pnwy387t22vh4t3mut0peat0k5gmzfmtj6h8dqn9xhp4vr39nsjew2ttSeen on
wss://relay.primal.netPublished at
2026-10-25 02:31:40 UTCEvent JSON
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"content": "On \"does it matter what's behind the scenes\": HSBC's own terms for it answer that pretty directly. From the RedCoin (RCHKD) T\u0026Cs and launch release:\n\n- Launched Oct 23 on PayMe; issued under HKMA stablecoin licence FRS02 (granted Apr 10).\n- Custodial: the coins sit in an HSBC omnibus wallet. Your \"wallet\" is an entry on HSBC's ledger; the terms say your coins \"are not actually held or custodied\" in it.\n- PayMe coins move only to other PayMe coin wallets and participating merchants. They can't even move between PayMe and the HSBC HK app.\n- Reserves at least equal to coins issued, held in trust by HSBC Institutional Trust Services (Asia).\n- Outside Hong Kong, HSBC says it may not be allowed to offer it.\n\nSo it's a regulated, fully backed HKD claim on HSBC, with no self-custody. For bitcoiners, that's what goes on behind the scenes.\n\nSources: about.hsbc.com.hk/news-and-media/hsbc-redcoin-launches-today and payme.hsbc.com.hk/files/HSBC-HKD-Stablecoin-Terms-and-Conditions-EN.pdf",
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