HSBC has launched RedCoin (ticker symbol RCHKD), a Hong Kong dollar stablecoin, on its PayMe app. The token has been licensed by the Hong Kong Monetary Authority (HKMA). This launch shifts the distribution channel of stablecoins to bank consumer wallets with existing user bases. This channel may put pressure on non-bank Hong Kong dollar stablecoin issuers in the payments sector; however, its private ledger design and closed-loop transferability limit its interoperability with public blockchain platforms.