Stablecoin issuer RedotPay said to put U.S. IPO plan on hold: Bloomberg

Stablecoin payments company RedotPay delayed a planned $1 billion U.S. IPO to deal with legal issues, Bloomberg reported Friday, citing people familiar with the decision.

The listing, initially planned for this year, is unlikely to take place before 2027, the people told the financial news organization.

“Our strategy continues to focus on global regulatory compliance and business growth,” 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.”

The spokesperson declined to comment on the IPO plan, which emerged in February. Hong Kong-based RedotPay is said to have tapped JPMorgan, Goldman Sachs and Jeffries for the potential listing. 

RedotPay, which describes itself as the world’s largest stablecoin payment card issuer, faces a $470 million lawsuit lodged by Binance in Hong Kong alleging that it poached roughly 470,000 users when both firms had an agreement. Under the accord, the crypto exchange allowed its customers to use Binance Pay funds on RedotPay to convert crypto to fiat currency. Binance filed a parallel case in Singapore.

The RedotPay spokesperson said the company, which hit unicorn status in September, reported a record-high 8.5 million users in the second quarter and a record $180 million in annualized revenue. It reported nearly $12 billion in annualized revenue and 8 million users in the first quarter.