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IPO Paused, US License
Stablecoin payments firm RedotPay has delayed a planned $1 billion U.S. IPO, with Bloomberg reporting the listing is unlikely to take place before 2027 as the company deals with legal issues.
“"This week we obtained a money transmitter license in the U.S. We are preparing to launch our product in the U.S."”
CoinDesk reports that a RedotPay spokesperson told CoinDesk via Telegram, "This week we obtained a money transmitter license in the U.S. We are preparing to launch our product in the U.S."
CoinDesk also says the Hong Kong-based company tapped JPMorgan, Goldman Sachs and Jeffries for the potential listing, and that the IPO plan emerged in February.
The finance.biggo report adds that the New York listing originally targeted for this year at a $1 billion (~1.4 trillion won) valuation is now difficult to achieve before 2027 due to legal disputes and regulatory hurdles.
CoinDesk further states that RedotPay describes itself as the world’s largest stablecoin payment card issuer and that it reported a record-high 8.5 million users in the second quarter and a record $180 million in annualized revenue.
Binance Lawsuit Pressure
RedotPay’s IPO delay is tied to a Binance dispute, with CoinDesk saying the company faces a $470 million lawsuit lodged by Binance in Hong Kong alleging it poached roughly 470,000 users when both firms had an agreement.
CoinDesk describes the accord as one in which the crypto exchange allowed its customers to use Binance Pay funds on RedotPay to convert crypto to fiat currency, and it says Binance filed a parallel case in Singapore.
finance.biggo reports that Binance affiliates filed a damages lawsuit in Hong Kong against RedotPay's founders seeking approximately $473 million (~1 trillion won) and alleging the founders used confidential information to build a competing business and improperly poached roughly 470,000 customers.
finance.biggo also says RedotPay has categorically denied the allegations and maintains it will vigorously defend itself.
Crypto News adds that Binance affiliates are seeking nearly $473 million in damages from RedotPay’s founders in the Hong Kong lawsuit, while RedotPay told crypto.news it would "vigorously defend all claims."
Growth, Valuation Uncertainty
Even as the IPO timeline slips, RedotPay says it is continuing U.S. preparations after obtaining a money transmission license, and CoinDesk quotes its spokesperson saying, "Our strategy continues to focus on global regulatory compliance and business growth,".
“"Our strategy continues to focus on global regulatory compliance and business growth,””
finance.biggo reports that RedotPay has been exploring a New York listing since February and working with JPMorgan Chase, Goldman Sachs, and Jefferies, with plans to raise more than $1 billion through the IPO and secure a valuation exceeding $4 billion.
CoinDesk says the company hit unicorn status in September and reported record $180 million in annualized revenue in the second quarter, while it also reported nearly $12 billion in annualized revenue and 8 million users in the first quarter.
finance.biggo highlights confusion around first-quarter figures cited by CoinDesk from the RedotPay spokesperson, stating that RedotPay’s official disclosures show first-quarter annualized revenue was around $180 million while the $12 billion figure likely refers to annual payment processing volume.
Menafn frames the stakes as the need to align regulatory rollout with public-market readiness, noting that the IPO delay comes as RedotPay manages legal risk alongside its U.S. expansion and that the company obtained a U.S. money transmitter license this week.
