HSBC’s RedCoin keeps stablecoin use inside PayMe
- HSBC launched a Hong Kong-dollar stablecoin PayMe users can activate for payments at participating merchants.
- RedCoin stays on HSBC’s private ledger and is not covered by Hong Kong’s deposit protection scheme.
HSBC has launched RedCoin, a stablecoin designed to track the Hong Kong dollar, for payments through its PayMe app. Bitcoin & Economic News reported that 3.3 million PayMe users are eligible to activate it, with payments accepted at more than 100,000 merchants.
RedCoin’s reach is limited to that setup: it runs on HSBC’s private ledger and cannot be transferred between PayMe and the bank’s app. It is also not covered by Hong Kong’s deposit protection scheme, so it does not carry the same protection as an eligible bank deposit.
The launch followed Hong Kong’s stablecoin licensing regime, which took effect in August 2025. Bitcoin & Economic News reported that 36 companies were competing for issuer licenses and that HSBC received its license from the Hong Kong Monetary Authority in April.
Shortly after launch, the show reported about $10.2 million in RedCoin circulation and $10.4 million in cash backing. Those figures offer an early snapshot of a product with a large potential PayMe audience, but use confined to PayMe and participating merchants.
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AI Bugs Me | Bitcoin News • Oct 26
- HSBC launched RedCoin, a Hong Kong dollar stablecoin that PayMe users can activate for payments at participating merchants. The token runs on HSBC’s private ledger, cannot move between PayMe and the bank’s app, and is not covered by Hong Kong’s deposit protection scheme.
Also discussed on this episode: (14)
Startups (1)
- Anthropic filed for an IPO on October 26, aiming to go public in November. Its prospectus reported $16.3 billion in first-half revenue alongside an $80.7 billion net loss, while the company warned that advanced AI could pose catastrophic risks without safeguards.
Education (1)
- David Bennett argues that relying on AI to write can weaken students’ learning because writing exercises the brain. He criticized Washington State University for hosting Google Gemini campus events and distributing Gemini-branded bags to students.
Protocol (1)
- Bitcoin Core changed its vulnerability disclosure policy because large language models make some bugs easy to rediscover. For bugs a simple LLM prompt can find, maintainers can ship fixes across supported versions promptly and disclose details soon after, rather than wait through the old embargo schedule.
Lightning (1)
- A volunteer Bitcoin red team used AI models to scan projects and reported thousands of findings. A privately reported BTCPay Server flaw was exploited on merchant servers, while Core Lightning told operators to disconnect after reports to its team proved real; David Bennett worries rushed fixes could introduce new bugs.
Nation-State (1)
- Benjamin Netanyahu said Israel could use blockchain and cryptocurrency to blunt potential financial sanctions, drawing criticism from Israel’s central bank, political opponents, and commentators. David Bennett compared the proposal to sanctions evasion by Iran and said crypto cannot replace banking, credit, or international capital markets.
Mental Health (1)
- In a sponsored segment, David Bennett described microdosing psilocybin as a possible aid for PTSD, anxiety, depression, and creativity, while stressing that it is not a cure-all and requires personal research. He promoted Microdays’ guidebook and said the company accepts Bitcoin.
Stablecoins (2)
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- A former Circle employee sued Donald Trump, alleging unconstitutional foreign payments tied to World Liberty Financial and its USD1 stablecoin. The complaint alleges a $500 million UAE ruling-family investment and a separate $2 billion Abu Dhabi-linked deal; David Bennett questioned whether the plaintiff has standing.
BTC Markets (1)
- David Bennett said the coming FOMC rate decision and competing AI IPOs could pressure Bitcoin, which was trading near $80,350. The market snapshot also showed a hash rate of 1.07 zettahashes per second and high-priority transaction fees of 2 sats per virtual byte.
Macro (1)
- The commodities snapshot showed Brent crude at $116.45 a barrel and West Texas Intermediate at $102.37. Gold was $4,036.50 an ounce, silver $54.28, and gasoline $3.24 a gallon; sugar led agricultural losses at 5.6%.
Mining (2)
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- Heatbit argues that household water heating could spread Bitcoin mining beyond large operators, while the article notes miners are shifting power and investment toward AI. Bernstein expects AI revenue at the miners it covers to grow sharply by 2030.
Corruption (1)
- An Argentine federal judge dismissed the criminal case over President Javier Milei’s promotion of the LIBRA token, following a prosecutor’s request. The token’s market value surged before collapsing, and wallets linked to the team cashed out; no investigated person was called to give a formal suspect statement.
Media (1)
- Listener JP Morgan Loves Bitcoin asked David Bennett to deliver future “meanwhile” transitions in the style of the Super Friends voice actor. Another listener, Nostrad Gang, said scammers will always be present; David Bennett also read a message promoting All Sats Matter.