First Digital, the Hong Kong-based issuer of the FDUSD stablecoin, is planning a public listing in New York. This move places the company among a growing number of crypto firms seeking to go public, benefiting from a supportive regulatory environment toward digital assets under the current administration.
The planned public listing will occur through a merger with CSLM Digital Asset Acquisition Corp III, a special purpose acquisition company (SPAC) already listed on the New York Stock Exchange. CSLM Digital Asset Acquisition Corp III successfully raised $230 million through its initial public offering on the Nasdaq stock market in August.
The proposed merger is expected to include a private investment in a public equity deal. While specific details are still reportedly being finalized, the intention to merge signals a significant step for First Digital's expansion and market presence.
Crypto Companies Accelerate Public Listing Efforts
The regulatory landscape has become more favorable for cryptocurrency companies, particularly following President Trump's signing of the GENIUS Act into law on July 18. This legislation established the first federal regulatory framework for stablecoins, creating a more defined operational environment for digital asset businesses.
This supportive regulatory climate has also fueled a significant increase in crypto-related SPAC activity, with transactions collectively exceeding $10 billion in 2025. This trend indicates a broader market confidence and investor interest in public offerings within the digital asset sector.
Hong Kong has also emerged as a key market for cryptocurrency listings this year. HashKey Holdings, for instance, successfully cleared the Hong Kong Stock Exchange's listing hearing on December 1 and is positioned to potentially raise up to $500 million.
Additionally, Bitkub, an exchange based in Thailand, is preparing for a Hong Kong IPO as early as 2026, with plans to raise $200 million. This follows an earlier abandonment of its domestic listing plans due to unfavorable market conditions in Thailand.
While the pace of crypto listings has accelerated significantly this year, some companies have opted to delay their public offerings in response to a substantial selloff in the digital asset market.
First Digital Faces Legal Challenges Amidst Expansion Plans
FDUSD, the stablecoin issued by First Digital, currently has approximately $920 million in market circulation. This figure represents a notable decrease from its peak of around $4.4 billion in April 2024.
Beyond its own stablecoin, First Digital also manages reserves as a fiduciary for TrueUSD, a stablecoin operated by Techteryx. This dual role places First Digital at the center of significant financial operations within the stablecoin ecosystem.
In late November, at a press conference, Justin Sun, founder of the Tron blockchain and an adviser to Techteryx, made accusations against First Digital Trust. Sun alleged that the company rerouted TrueUSD reserves offshore and fabricated transaction documents to conceal these transfers. In response, a Dubai court issued a worldwide freezing order affecting $456 million in assets linked to the disputed reserves.
First Digital has vehemently denied these allegations and has initiated a defamation claim against Sun. The company explicitly stated in a social media post in November that Sun's claims were baseless.
The core of this dispute revolves around the authorization of First Digital to transfer TrueUSD reserve assets into illiquid investment vehicles managed by Aria Commodities, a trade finance firm based in Dubai. The legality and propriety of these asset transfers are central to the ongoing legal proceedings.
Justin Sun has asserted that he personally contributed approximately $500 million to address an alleged liquidity shortfall within TrueUSD. He has also called upon Hong Kong regulators to intervene and enhance their supervision of trust companies operating within the jurisdiction.