RedotPay completes audit as it pursues US IPO
The Hong Kong stablecoin payments firm says it has finished a financial audit and an AML review, and denies an August report that its US listing had been put on hold.
Key points
- RedotPay completed a financial audit and a separate review of anti-money-laundering and counter-terrorist-financing controls, both by unnamed Big Four firms.
- A spokesperson told CoinDesk there has been no deferral of the IPO, contradicting an August Bloomberg report of a delay to 2027 or later.
- A person familiar with the matter said the company is targeting a valuation above $5 billion.
- RedotPay said it had 8.5 million users as of July and lets users hold stablecoins, spend via a linked Visa card and send money across borders.
- The person said second-quarter transaction volume hit a record and operating margin exceeded 50%, without giving underlying figures.
RedotPay has completed a financial audit as it presses ahead with plans for a US initial public offering, the Hong Kong-based stablecoin payments company said in a press release on Monday. Audited financial statements are a requirement for a US listing, and the company said the audit forms part of its preparation to go public.
The company also completed a separate review of its anti-money-laundering and counter-terrorist-financing controls. Both pieces of work were carried out by Big Four firms, which RedotPay did not name. According to CoinDesk, a US IPO prospectus must include audited financial statements, while the compliance review is a separate part of the firm's preparations.
Michael Gao, chief executive and co-founder of RedotPay, said in emailed comments that the company undertook the audits to build confidence and trust in its financial reporting and compliance standards, and that they form part of its preparation for taking the company public. The remarks are the company's clearest acknowledgment yet of its IPO plans, CoinDesk reported.
Audit and compliance review
They follow a Bloomberg report in August that RedotPay had delayed a US listing while seeking regulatory approvals and dealing with legal issues. That report said a listing might take place in 2027 or later rather than this year. A RedotPay spokesperson told CoinDesk there had been no deferral of the IPO and that the company is continuing to work with its partners on the process. No listing date was given.
RedotPay is targeting a valuation of more than $5 billion, according to a person familiar with the matter. The same person said transaction volume reached a record in the second quarter and that the company's operating margin exceeded 50%, without providing the underlying financial figures.
RedotPay lets users hold stablecoins in an app, spend them through a linked Visa card and send money across borders. The company said it had 8.5 million users as of July.
IPO timing disputed
The push toward a listing comes as several other crypto companies have pushed back their IPO plans. Kraken parent Payward, Ethereum software developer Consensys, hardware wallet maker Ledger and asset manager Grayscale have all delayed prospective listings amid weaker market conditions, according to CoinDesk's reporting.