Key Takeaways
- HSBC has named its forthcoming Hong Kong-dollar stablecoin RedCoin, with everyday payments planned first.
- EGRAG Crypto’s latest XRP chart maps a potential rally toward $27.
- RedCoin has not yet got a release date.
HSBC’s planned RedCoin stablecoin could add competition in the digital payments market Ripple is targeting, even as XRP bulls hold out hope for “face melting” rally toward $27.
The bank unveiled the name on Sept. 30, outlining plans for a Hong Kong-dollar token that would initially support transfers between friends and merchant payments before expanding into institutional uses.
Its initial domestic focus differs from XRP’s role as a bridge asset for cross-border payments.
However, the bank’s expansion plans raise a competitive question for Ripple of how much demand will remain for bridge assets as banks develop their own digital money.
HSBC Brings a Potential Payments Competitor Into Familiar Apps
HSBC’s opportunity is to put digital money inside banking and payment apps its customers already use.
According to its Sept. 30 announcement, RedCoin will initially focus on transfers between individuals and payments to merchants, before expanding into corporate and institutional uses.
“Launching our coin is just the beginning,” said Maggie Ng, HSBC’s Hong Kong chief executive.
Although the bank has not yet issued the token, its planned distribution through PayMe and the HSBC HK Mobile App nevertheless gives it an established route to potential customers.
The competitive implication for Ripple becomes more significant if HSBC expands beyond everyday domestic payments into business settlement.
Banks offering their own digital-money services could compete for some of the customers and payment flows Ripple seeks to serve.
Where RedCoin Could Compete With Ripple—and Where XRP Still Fits
RedCoin and XRP have different functions.
HSBC’s token will be denominated in Hong Kong dollars, meanwhile XRP is a crypto that Ripple uses as a bridge between currencies in certain payment flows.
A bank-issued stablecoin could offer customers a way to transfer digital money without holding a volatile asset, putting XRP in the firing line.
However, moving between different currencies still requires conversion and sufficient liquidity.
Ripple’s explanation of its payments strategy places XRP’s bridge role particularly in less-liquid currency corridors.
It also acknowledges that highly liquid corridors can support stablecoin payments without requiring XRP as an intermediary.
That leaves room for competition.
RedCoin could compete with parts of Ripple’s payments offering if their customers and services overlap, while XRP could remain useful in flows that require a separate liquidity bridge.
Ripple also has its own dollar stablecoin, RLUSD.
The company’s payment ambitions, therefore, extend beyond XRP, making HSBC’s expansion a potential competitor to its entire scope.
XRP Bulls Still See a Path Toward $27
Against the backdrop of the evolving payments landscape, EGRAG Crypto continues to present an exceptionally bullish XRP scenario.
His Sept. 29 post features a chart with targets of $9, $13, $17 and $27, according to reporting on the chart.
The post references a three-day chart, a 444-week moving average, longer-term trend lines and repeated bottom formations, alongside a potential “Face Melting Phase.”
Using the approximately $1.51 price shown in the reported chart, reaching $27 would require a gain of roughly 1,688%, leaving XRP worth almost 18 times as much.
Delivering that wild increase would require substantially greater buying demand at higher prices.
The question for XRP bulls remains how much future payment activity will actually require the token.
HSBC’s planned entry adds another potential competitor, while EGRAG’s chart is a reminder that bullish expectations remain far above its actual trading levels.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
