First Digital, FDUSD Issuer, Pursues NY Listing via SPAC Merger Amid Legal Dispute

First Digital Group, the Hong Kong-based issuer of the FDUSD stablecoin, has announced plans to go public on the New York Stock Exchange through a merger with special purpose acquisition company CSLM Digital Asset Acquisition Corp III. The SPAC raised $230 million in an initial public offering on Nasdaq in August 2025, and the merger includes a private investment in public equity deal, though details are still being finalized.

This move comes amid a supportive regulatory environment under the Trump administration, with President Trump signing the GENIUS Act into law on July 18, 2025, establishing the first federal framework for stablecoins. This has spurred crypto SPAC activity, exceeding $10 billion in 2025, and other companies like HashKey Holdings and Bitkub are also pursuing listings in Hong Kong.

However, First Digital faces significant challenges. FDUSD's market circulation has plummeted to approximately $920 million from a peak of $4.4 billion in April 2024. Additionally, the company is embroiled in a legal dispute with Justin Sun, founder of Tron and adviser to Techteryx, which operates the TrueUSD stablecoin. Sun accuses First Digital of rerouting TrueUSD reserves offshore, leading to a Dubai court issuing a worldwide freezing order on $456 million in assets. First Digital has denied the allegations and filed a defamation claim against Sun.

The SPAC merger could enhance FDUSD's regulatory compliance, transparency, and institutional trust, potentially setting new benchmarks for the stablecoin industry. But regulatory hurdles and the ongoing legal battle pose risks to First Digital's public listing ambitions.