Hong Kong-based RedotPay has completed the required financial audit ahead of its U.S. stock market debut, and it is continuing with those plans even though an August report claimed the listing had been delayed.
On Monday, the stablecoin payments company announced in a press release that it had wrapped up a financial audit alongside a separate examination of its anti-money-laundering and counter-terrorist-financing controls. Both assessments were conducted by Big Four firms, though the company declined to identify them by name.
A U.S. IPO prospectus must include audited financial statements, and the compliance review is a separate part of the firm’s preparations. The audit is part of the company’s broader push to become publicly traded.
The Audit and What It Means
RedotPay’s CEO and co-founder, Michael Gao, said the company undertook the audits to build confidence and trust in its financial reporting and compliance standards. He added that they form part of the company’s preparation for taking the company public.
“We undertook these audits to build confidence and trust in our financial reporting and compliance standards,” Gao said in emailed comments. “They also form part of our preparation for taking the company public.”
The company said it had 8.5 million users as of July.
The Contradiction With Bloomberg
The announcement from RedotPay runs contrary to a report from Bloomberg in August. The report stated that RedotPay had pushed back a U.S. listing while working through regulatory approvals and legal issues, and suggested a listing could happen in 2027 or later instead of this year.
A RedotPay spokesperson told CoinDesk in emailed comments that there has been no deferral of the IPO. “There has been no deferral of our IPO,” the spokesperson said. “We are continuing to work with our partners on the IPO process.” The company did not give a listing date.
The company’s position is simple: the IPO is not delayed.
Valuation and Competition
According to a person familiar with the matter, RedotPay is aiming for a valuation of over $5 billion. The firm reported a record transaction volume in the second quarter, and its operating margin surpassed 50%, though no underlying financial figures were given.
As several crypto companies hold back their IPO plans, the stablecoin firm is moving ahead with a push for a listing. Payward, the parent company of Kraken, has put off its own listing. So have Consensys, which builds software for Ethereum, Ledger, which makes hardware wallets, and Grayscale, an asset manager — all citing weaker market conditions, per CoinDesk’s reporting.
What the Company Does
The app RedotPay lets people keep stablecoins, spend them using a linked Visa card, and move money between countries. According to the company, its user count stood at 8.5 million as of July.
The company’s push toward a listing comes as stablecoins move into regulated finance, and APAC is becoming a key proving ground, according to a report mapping the region’s rules, use cases and RLUSD’s role.
Key Facts Box
- Audit: Completed by Big Four firms
- Compliance review: Also completed by Big Four firms
- Users: 8.5 million as of July
- Target valuation: More than $5 billion
- Transaction volume: Record in Q2
- Operating margin: Exceeded 50%
- Listing status: Not deferred, per RedotPay
RedotPay has stated its stance: both the audit and the compliance review have reached their conclusions, and the firm is now moving forward without delay.
Source material: “RedotPay completes financial audit as it presses ahead with U.S. IPO plans,” CoinDesk.
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