Bank stablecoin for 3.3 million users: “crypto assets are generally not protected”

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.HSBC switched on the RedCoin stablecoin in its payment app on October 23, 2026, and the terms make clear that deposit protection does not apply. The same principle holds for e-money tokens in the EU: instead of 100,000 euros in compensation, you hold a redemption right against the issuer. When your bank issues a stablecoin, your money no longer sits in an account. It sits in a token. That changes everything for the statutory deposit guarantee, because the guarantee does not cover that balance. On its consumer page on deposit protection, German regulator BaFin puts it plainly: crypto assets are “generally not protected”. What you get instead is a redemption claim against the issuer. Since October 23, 2026, that is no longer a theoretical question. On that day a major bank placed its own stablecoin inside a payment app with millions of users. In Germany, banks are working on a euro equivalent. Understand the difference between an account balance and a token now, and you will not h...