Stablecoin payments company RedotPay has put on hold its planned United States initial public offering that was expected to raise more than $1 billion. The Hong Kong-based firm, which positions itself as the world’s largest stablecoin payment card issuer, is addressing legal matters and advancing regulatory steps needed for US market entry. The listing, first discussed earlier this year with a potential valuation above $4 billion, is now viewed as unlikely to proceed before 2027.

JPMorgan Chase, Goldman Sachs and Jefferies had been engaged to advise on the potential New York listing. A company spokesperson declined to discuss the IPO timetable directly, instead stressing ongoing priorities around compliance and expansion.

Lawsuit from Binance Affiliates Adds Pressure

The delay coincides with a substantial legal claim filed by Binance-affiliated entities in Hong Kong. The plaintiffs are seeking nearly $473 million in damages from RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. The suit alleges the founders used confidential information from prior work connected to Binance to establish a competing payments business and diverted roughly 470,000 customers.

According to the claims, the parties previously had a commercial arrangement under which Binance customers could use Binance Pay funds on the RedotPay platform for crypto-to-fiat conversions. Binance affiliates contend the arrangement was breached, including improper use of funds for card top-ups and the redirection of users to RedotPay’s own card product. A related proceeding is also underway in Singapore, where the two sides have offered differing accounts of the case status.

RedotPay has rejected the allegations. The company stated it is aware of the proceedings and will vigorously defend all claims, adding that the matter has no effect on its day-to-day operations.

US Expansion Moves Forward Despite Listing Pause

While capital-markets timing has shifted, RedotPay continues operational progress in the United States. The firm secured a money transmitter license this week and is preparing to introduce its stablecoin payment services domestically. The company has reported reaching 8.5 million users and described record levels for users, revenue, profit and margins in its most recent quarterly update.

Founded in 2023, RedotPay provides stablecoin-based payment cards, multicurrency wallets and global payout capabilities. It attained unicorn status in 2025 after successive funding rounds and has expanded services into multiple markets. Earlier this year the company also explored raising additional private capital of up to $150 million while adjusting its organizational structure to support growth.

The combination of the large unresolved claim and the need to complete regulatory processes for US operations has altered the path toward a public listing. RedotPay has not provided a revised timetable for when it might restart formal IPO preparations.

Background on the Proposed Offering

Reports of RedotPay’s interest in a US listing first appeared in February. At that stage the company was described as targeting a raise exceeding $1 billion at a valuation above $4 billion. Discussions with major investment banks advanced alongside internal efforts to professionalize operations as the business scaled from startup to unicorn status.

Stablecoin payment platforms typically require multiple licenses and clear regulatory standing before undertaking the scrutiny associated with a public offering. RedotPay’s recent US license approval represents a concrete step toward offering services in the world’s largest financial market, even as the IPO itself remains deferred.

The company has not indicated whether its relationships with the previously named underwriters remain active or how the legal proceedings in Hong Kong and Singapore may influence future capital-raising decisions. For now, management has directed attention toward compliance work, product readiness in the United States and continued business expansion.