In a bold move that signals growing confidence in the cryptocurrency sector, Hong Kong-based stablecoin issuer First Digital is gearing up for a public offering in the United States. The company has announced its intent to merge with CSLM Digital Asset Acquisition Corp III, a special purpose acquisition company (SPAC) currently listed on Nasdaq. This development comes on the heels of a non-binding letter of intent between the two companies, reported last week.
CSLM, which successfully raised $230 million during its IPO in August 2025, is expected to play a pivotal role in this merger, which will likely include a private investment in public equity (PIPE). The structure of the deal is still under consideration, but the prospects of First Digital becoming a publicly traded entity in the US reflect a broader trend as cryptocurrency firms adapt to changing regulatory conditions.
Crypto Firms Eyeing US Markets Amid New Regulations
First Digital’s strategic decision aligns with a shift observed among various crypto entities looking to gain a foothold in the US market following recent federal regulations. Notably, the GENIUS Act, signed by President Trump in July, laid down the first comprehensive framework governing stablecoin operations.
In tandem, over $10 billion in crypto-related SPAC transactions have been unveiled in 2025, as firms respond enthusiastically to an improved regulatory climate. The market is witnessing a resurgence of investor interests and a newfound ease in navigating regulatory hurdles. Other players in the field are also making strides; for instance, HashKey Holdings recently passed its listing hearing in Hong Kong with aspirations to raise up to $500 million, while Thailand’s Bitkub aims for a 2026 IPO following prior delays.
Market Dynamics: FDUSD Supply Drops Significantly
At the center of First Digital’s operations is its stablecoin, FDUSD, which has experienced a drastic reduction in market supply, plummeting to approximately $920 million from a high of $4.4 billion in April 2024. This stablecoin is pegged to the US dollar and operates across several major blockchain platforms.
First Digital not only issues FDUSD but also manages reserve assets for TrueUSD. However, this aspect has recently come under scrutiny due to an escalating legal dispute with Techteryx, the operator of TrueUSD, concerning the management of these reserves.
Notably, Justin Sun, the founder of Tron and a key advisor to Techteryx, accused First Digital of mishandling reserve funds, claiming that $456 million in frozen assets related to this case were improperly routed offshore. Sun further alleged that he contributed $500 million to support liquidity during a prior shortfall at TrueUSD.
Ongoing Legal Challenges Raise Transparency Questions
In response to these accusations, First Digital has voiced strong objections, asserting that the claims are baseless and alleging defamation by Sun. The company maintains that its fiduciary obligations were upheld within the parameters of relevant legal frameworks.
The escalating dispute primarily centers around First Digital’s rights regarding the management of TrueUSD reserves, specifically its involvement in placing these assets into trade finance structures managed by Dubai-based Aria Commodities. As regulatory scrutiny intensifies concerning stablecoin reserves, this case is poised to attract significant attention.
