Stablecoin Firm First Digital Plans Nasdaq Listing Through CSLM SPAC

TLDR

• First Digital plans merger with CSLM SPAC for a US stock market debut

• FDUSD supply fell to $920M from $4.4B in April 2024

• CSLM raised $230M in a Nasdaq IPO for digital asset investments

• Legal dispute ongoing between First Digital and Techteryx over TrueUSD reserves

Hong Kong-based stablecoin issuer First Digital is preparing to go public in the United States through a proposed merger with CSLM Digital Asset Acquisition Corp III, a special purpose acquisition company listed on Nasdaq. The companies have signed a non-binding letter of intent for the merger, according to Bloomberg.

CSLM raised $230 million in its August 2025 IPO. The deal is expected to include a private investment in public equity (PIPE), although the structure is still under review. This move comes as crypto firms pursue US listings amid changing regulatory conditions.

Favorable US Environment Boosts Crypto Listings

First Digital’s decision aligns with a broader trend among crypto companies pursuing US listings following new federal regulations. President Trump signed the GENIUS Act in July, creating the first national framework for stablecoin oversight.

Over $10 billion in crypto-related SPAC deals have been announced this year. Companies are responding to the more supportive environment, with market participants seeing renewed investor appetite and fewer regulatory hurdles.

Other firms are also moving forward with listings. HashKey Holdings recently cleared its listing hearing in Hong Kong and may raise up to $500 million. Thailand-based Bitkub is planning a Hong Kong IPO in 2026 after delaying domestic plans.

FDUSD Supply Shrinks Amid Market Volatility

First Digital issues the FDUSD stablecoin, which has seen its market supply fall to about $920 million—down from a peak of $4.4 billion in April 2024. FDUSD is pegged to the US dollar and operates on several major blockchain networks.

In addition to issuing FDUSD, First Digital manages reserve assets for TrueUSD, another stablecoin. These reserves have become the subject of an ongoing legal dispute between First Digital and Techteryx, the operator of TrueUSD.

At a recent press conference, Tron founder Justin Sun, who advises Techteryx, accused First Digital of mishandling TrueUSD reserves. A Dubai court has issued a freezing order on $456 million in assets connected to the issue.

Legal Dispute With Techteryx Escalates

Justin Sun claims First Digital routed reserve funds offshore and used false documents to conceal transfers involving illiquid assets. He alleges that he contributed $500 million to support liquidity during a shortfall at TrueUSD.

First Digital has rejected the claims and filed a defamation suit against Sun. In a statement posted to social media, the company called the allegations false and said its role as a fiduciary was performed within legal limits.

The dispute focuses on whether First Digital had the right to place TrueUSD reserves into trade finance structures managed by Dubai-based Aria Commodities. The case continues as regulatory interest grows in stablecoin reserve transparency.