RedotPay, a Hong Kong-based stablecoin payments company, has completed a financial audit required for a U.S. initial public offering, the company announced Monday. The audit represents a key step in the firm's preparations to take the business public.
RedotPay also finished a separate review of its anti-money-laundering and counter-terrorist-financing controls. Both audits were conducted by Big Four firms, though the company did not identify which ones. Audited financial statements are mandatory components of any U.S. IPO prospectus.
Addressing IPO Timeline Questions
The company's announcement directly contradicts an August report from Bloomberg indicating that RedotPay had delayed its U.S. listing due to regulatory and legal complications, with a potential listing pushed to 2027 or later. "There has been no deferral of our IPO," a RedotPay spokesperson told CoinDesk. "We are continuing to work with our partners on the IPO process." The company did not provide a specific listing date.
Michael Gao, CEO and co-founder of RedotPay, said the audits were undertaken "to build confidence and trust in our financial reporting and compliance standards" and "form part of our preparation for taking the company public."
Company Operations
RedotPay operates a platform that allows users to hold stablecoins in a mobile app, spend them through a linked Visa card, and send money internationally. As of July, the company reported 8.5 million users.
According to a person familiar with the matter, RedotPay is targeting a valuation exceeding $5 billion. The same source reported that transaction volume reached a record in the second quarter and that the company's operating margin exceeded 50%, though underlying financial figures were not disclosed.
Broader IPO Trends
RedotPay's pursuit of a public listing comes as other cryptocurrency companies have postponed 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.
