First Digital Group to Combine with CSLM Digital Asset Acquisition Corp III for New York Public Listing

First Digital's IPO Plans: First Digital, the issuer of the FDUSD stablecoin, is planning to go public in New York by merging with CSLM Digital Asset Acquisition Corp III, a SPAC that raised $230 million in August. This move reflects a broader trend of crypto companies seeking public listings amid a favorable regulatory environment under the Trump administration.

Regulatory Environment and Market Activity: The signing of the GENIUS Act by President Trump has established a federal regulatory framework for stablecoins, contributing to a surge in crypto SPAC activity, which reached over $10 billion in 2025. Hong Kong has also seen increased listing activity, with companies like HashKey Holdings and Bitkub planning significant IPOs.

Legal Disputes Involving First Digital: First Digital is facing legal challenges, including allegations from Justin Sun regarding the mishandling of TrueUSD reserves, which led to a Dubai court freezing $456 million in assets. The company has denied these allegations and filed a defamation claim against Sun.

Market Performance of FDUSD: The FDUSD stablecoin has seen a significant decline in market circulation, dropping from $4.4 billion in April 2024 to approximately $920 million. The ongoing legal disputes and market conditions have contributed to this downturn.