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Stablecoin Firm RedotPay Delays IPO

Stablecoin payments company RedotPay is delaying its planned $1 billion U.S. initial public offering (IPO).

The delay is due to legal issues the company faces, according to multiple media reports.

The IPO, which was expected by year’s end, is now unlikely to take place before 2027.

The IPO was expected as RedotPay prepares to enter the U.S. market, having recently obtained a money transmitter license for the American market.

Hong Kong-based RedotPay had been working with U.S. banks JPMorgan Chase (NYSE: $JPM) and Goldman Sachs (NYSE: $GS) on the planned IPO.

RedotPay describes itself as the world’s largest stablecoin payment card issuer. The company faces a $470 million U.S. lawsuit filed by crypto exchange Binance.

The legal action claims that RedotPay poached 470,000 users from Binance, violating an agreement between the two companies.

Binance had allowed its customers to use funds on RedotPay to convert crypto to fiat currency. However, Binance claims RedotPay used the arrangement to steal its customers.

RedotPay has denied Binance’s allegations but reportedly wants to resolve the lawsuit before going pubic.

Privately held RedotPay claims to have 8.5 million users and $180 million U.S. in annual revenue. Binance is also a private company and its stock does not trade on a public exchange.