Hong Kong’s FDUSD Issuer First Digital Moves Toward US Public Listing

TLDR

• First Digital, the issuer of FDUSD, plans to go public in the US by merging with SPAC CSLM Digital Asset Acquisition Corp III.
• The SPAC raised $230 million through its IPO in August 2025 and is listed on the New York Stock Exchange.
• First Digital’s move comes after the Trump administration signed the GENIUS Act, creating a federal regulatory framework for stablecoins.
• FDUSD’s market circulation stands at approximately $920 million, a significant decline from its peak of $4.4 billion in April 2024.
• The growing interest in crypto IPOs is reflected in First Digital’s push for a US public listing, amidst a surge in SPAC activity.

First Digital, the Hong Kong-based issuer of FDUSD, is planning to go public in the US. The company intends to merge with a special purpose acquisition company (SPAC) named CSLM Digital Asset Acquisition Corp III. This SPAC is listed on the New York Stock Exchange and raised $230 million through its initial public offering (IPO) in August 2025.

The merger will involve a private investment in a public equity deal. While the specifics of this deal are still being finalized, it marks an important move for First Digital. The company’s decision comes at a time when crypto companies are increasingly pursuing public listings in the US.

Trump Administration’s Regulatory Impact on Crypto

The move aligns with the Trump administration’s supportive approach to digital assets. President Trump signed the GENIUS Act into law in July 2025, establishing a federal regulatory framework for stablecoins. This regulatory shift has fueled a surge in crypto SPAC activity, which reached over $10 billion in 2025.

FDUSD is one of the latest stablecoins to be issued by First Digital, with a market circulation of approximately $920 million. This is a drop from the $4.4 billion it saw at its peak in April 2024. As stablecoins continue to gain traction in the crypto market, First Digital’s decision to go public highlights growing interest in blockchain and digital assets.

First Digital Faces Legal Challenges Over FDUSD

Hong Kong has become an attractive location for crypto listings in recent years. Other companies, such as HashKey Holdings, recently cleared the Hong Kong Stock Exchange’s listing hearing. Additionally, Thailand-based exchange Bitkub plans to raise $200 million in an IPO in Hong Kong by 2026.

The pace of crypto listings has accelerated in 2025, even though some companies have delayed their plans due to market conditions. First Digital’s public listing is part of this larger trend of crypto companies seeking more visibility and access to capital.

Despite these developments, First Digital has faced challenges related to its stablecoin FDUSD. Justin Sun, the founder of the Tron blockchain, accused the company of improper handling of reserves for the TrueUSD stablecoin. He claimed that First Digital Trust rerouted TrueUSD reserves to illiquid vehicles managed by a Dubai-based firm, Aria Commodities.

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