Key Highlights
- First Digital plans to go public through a SPAC merger with New York–listed CSLM.
- The company is in a legal dispute with Techteryx over TrueUSD reserve management.
- The firm is the issuer of FDUSD’s stablecoin, whose circulation has dropped sharply from $4.4 billion to about $908 million.
First Digital Group, a Hong Kong-based stablecoin company, is planning to go public by merging with a special purpose acquisition company (SPAC) called CSLM Digital Asset Acquisition Corp III, listed in New York.
The firm is set to announce a non-binding letter of intent outlining the plan, as crypto companies take advantage of more favorable rules to list on stock markets. Details are not yet public, and First Digital declined to comment, while CSLM also had no comment.
According to a report, the merger will also include a private investment in a public equity deal, though the details of this deal are still being worked out. CSLM raised $230 million through its Nasdaq IPO in August, giving it capital to merge with First Digital.
The move comes amid increased crypto listings, with firms seeking to benefit from pro-industry regulations in the United States. Hong Kong is also emerging as a hub for crypto deals, with companies like HashKey Group and Bitkub considering public listings in the city. Some firms have postponed plans following a recent sell-off in digital assets.
First Digital is the issuer of FDUSD, a stablecoin with a current market circulation of about $908 million, down from $4.4 billion at its peak in April 2024. The company also manages reserves as a fiduciary for TrueUSD, a stablecoin run by Techteryx and advised by billionaire crypto entrepreneur Justin Sun.
Legal issues with Techteryx
First Digital is currently in a legal dispute with Techteryx over whether it authorized transfers of TrueUSD reserve assets into illiquid vehicles.
Justin Sun held a press conference last month, calling on Hong Kong regulators to step in, after claiming in April that he had put up $500 million of his own money to cover a liquidity shortfall. Recently, First Digital responded to the claim in a post on X, saying Sun’s claims were “baseless.”
The SPAC merger offers a faster route to going public compared with a traditional IPO, which will help First Digital access capital and expand its reach.
