Key facts
- RedotPay has delayed its planned $1 billion U.S. IPO.
- The IPO is now not expected to happen before 2027.
- The company is facing a $470 million lawsuit from Binance.
- RedotPay recently secured a U.S. money transmitter license.
- The firm is preparing to launch its product in the U.S.
Stablecoin payments firm RedotPay has postponed its planned $1 billion U.S. initial public offering, with the listing now unlikely before 2027, according to Bloomberg. The delay is attributed to ongoing legal issues, including a significant lawsuit filed by Binance.
RedotPay, which recently obtained a U.S. money transmitter license and is preparing for a U.S. product launch, declined to comment on its IPO plans. The company, describing itself as the world's largest stablecoin payment card issuer and having recently achieved unicorn status, is embroiled in a $470 million lawsuit from Binance. Binance alleges that RedotPay poached approximately 470,000 users while both firms had an agreement allowing Binance Pay funds to be used on RedotPay for crypto-to-fiat conversions. A parallel case has been filed in Singapore.
Despite the legal challenges, RedotPay reported a record 8.5 million users and $180 million in annualized revenue in the second quarter, following nearly $12 billion in annualized revenue and 8 million users in the first quarter. The company had reportedly tapped JPMorgan, Goldman Sachs, and Jeffries for the potential listing.