China is seeking to confiscate 61,896 Bitcoin worth $5.1 billion, while HSBC has begun rolling out its Hong Kong dollar-backed RedCoin stablecoin.
Chinese prosecutors have applied to confiscate Bitcoin seized by UK authorities in connection with a massive investment fraud. A day later, on October 23, HSBC began making RedCoin available through its PayMe payments app in Hong Kong, opening access to a potential user base of more than 3.3 million people.
Their timing raises an interesting question: as governments pursue disputed crypto holdings, are established banks preparing to bring digital money into a more tightly regulated financial system?
China Seeks Control of 61,896 Bitcoin
The confiscation application concerns Bitcoin linked to Zhimin Qian, who ran a fraudulent investment operation in China between 2014 and 2017. Prosecutors allege the scheme raised more than 40 billion yuan through fraudulent investment products, leaving more than 102,000 investors with losses.
UK authorities seized the cryptocurrency during their investigation. Qian was sentenced to 11 years and eight months in prison in the UK in November 2025 after pleading guilty to acquiring and possessing criminal property.
The latest application marks another stage in the dispute over who should ultimately receive the assets.
The Tianjin No. 2 Intermediate People’s Court accepted the confiscation application on September 28. The court published a notice on October 13, while the UK High Court ruled on October 12 that Chinese law should govern victims’ claims to the Bitcoin. International crypto media reported the Chinese confiscation bid on October 22.
The UK ruling did not settle ownership of the coins. Investors must still establish their rights under Chinese law, and lawyers representing claimants have reportedly pursued an appeal.
But the application does not mean China has taken possession of the coins. The immediate development is a legal claim over assets already held by UK authorities. At approximately $82,000 per Bitcoin, the 61,896 BTC would be worth about $5.1 billion.
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HSBC RedCoin Goes Live in Hong Kong
While the Bitcoin dispute moves through the courts, HSBC is introducing a different model of digital money. Today, the bank began rolling out HSBC RedCoin through PayMe, its Hong Kong payments platform. The stablecoin is designed to maintain a one-to-one redemption value against the Hong Kong dollar and is backed by segregated, liquid assets, according to HSBC.
HSBC Launches HKD-Backed RedCoin Stablecoin for 3.3 Million PayMe Users in Hong Kong
According to the South China Morning Post, HSBC is rolling out its Hong Kong dollar-backed stablecoin, RedCoin, to more than 3.3 million PayMe users starting October 23. The initial phase… pic.twitter.com/dGitKCfD8Y
— Wu Blockchain (@WuBlockchain) October 23, 2026
The initial rollout focuses on person-to-person transfers and payments to merchants. PayMe has more than 3.3 million users, and the bank plans to add stablecoin wallet functionality to its Hong Kong mobile banking app later this year.
HSBC RedCoin is issued under a license granted by the Hong Kong Monetary Authority. The bank has also outlined plans to expand into institutional and corporate use cases, including tokenized investment products.
That puts the launch within Hong Kong’s effort to develop a regulated digital-asset market. Although Hong Kong is a Special Administrative Region of China, it maintains a distinct legal and financial system under the “one country, two systems” framework.
Consequently, the launch should not be interpreted as evidence that mainland China is abandoning its own crypto restrictions. HSBC RedCoin is a Hong Kong dollar-backed stablecoin operating under Hong Kong’s regulatory framework, not a Chinese yuan stablecoin issued for mainland circulation.
Bitcoin, HSBC RedCoin, and Digital Money
The contrast between Bitcoin and HSBC RedCoin highlights two different questions facing the digital-asset industry: who controls an asset, and how people use it.
Bitcoin operates on a decentralized network, but disputes over stolen or seized holdings can still involve national courts, law enforcement agencies, and competing claims from victims. The Chinese application demonstrates how difficult it can be to establish ownership when cryptocurrency linked to alleged criminal activity crosses borders.
HSBC RedCoin takes a more conventional route. Its value is tied to a national currency, it is issued by a licensed financial institution, and its initial use cases center on payments through established banking infrastructure.
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