RedotPay Pauses $1 Billion U.S. IPO Plans Amid Legal Challenges

Finance RedotPay Pauses $1 Billion U.S. IPO Plans Amid Legal Challenges

A representative from RedotPay refrained from discussing any IPO intentions.

By Olivier Acuna|Edited by Sheldon Reback 30 min ago 1 min read

Stablecoin payment company RedotPay has decided to delay its ambitious plan for a $1 billion IPO in the U.S., which is now not expected to happen before 2027, as it navigates various legal issues, according to Bloomberg.

• The Hong Kong-based firm recently secured a money transmitter license in the U.S. and is preparing for a product launch there, but has chosen not to comment on its IPO strategy.
• RedotPay, which claims to be the largest issuer of stablecoin payment cards globally and has recently achieved unicorn status, is currently facing a $470 million lawsuit from Binance over allegations of user poaching.

The IPO, which was initially set for this year, has been postponed as RedotPay focuses on resolving these legal matters. Sources informed Bloomberg that a listing is now unlikely before 2027.

"Our strategy remains centered on ensuring global regulatory compliance and driving business growth," a RedotPay representative stated via Telegram. "This week, we successfully obtained a money transmitter license in the U.S., and we are gearing up for our product launch in the country."

The spokesperson did not provide any details regarding the IPO, which was first announced in February. Reports indicate that RedotPay had engaged JPMorgan, Goldman Sachs, and Jeffries for assistance with the potential listing.

Additionally, RedotPay is dealing with a $470 million lawsuit from Binance, which claims that RedotPay enticed around 470,000 users away from Binance during a period when both companies had a partnership. Under this partnership, Binance allowed its customers to use Binance Pay funds on RedotPay to convert cryptocurrencies into fiat currency. Binance has also filed a related case in Singapore.

Despite these challenges, RedotPay, which achieved unicorn status in September, reported a record 8.5 million users in the second quarter and $180 million in annualized revenue. In the previous quarter, it had nearly $12 billion in annualized revenue and 8 million users.