Quick take:
- The SPAC merger is the latest in a long list as more crypto companies seek public listing amid a more crypto-friendly regulatory environment in the U.S.
- Techterix, which operates the stablecoin TrueUSD (TUSD), has sued First Digital, alleging that reserves were improperly transferred to illiquid assets.
- TrueUSD has depegged from the $1 peg multiple times, notably in June 2023, and again in 2024.
First Digital Group, the stablecoin firm behind the FDUSD stablecoin, is reportedly planning to go public via a merger with a special public acquisition company (SPAC). According to the report by Bloomberg, First Digital is merging with CSLM Digital Asset Acquisition Corp III, a SPAC listed in New York.
The report comes amid a growing list of crypto companies that are seeking to go public due to the perceived friendlier regulatory environment in the U.S.
First Digital is renowned for being the issuer of the FDUSD stablecoin. The firm also manages reserves for TrueUSD, a fiat-backed stablecoin issued by Techteryx.
FDUSD depegged in April this year, before returning to its peg a few hours later, after the Tron Founder and crypto entrepreneur Justin Sun raised questions about the liquidity of the reserves backing the stablecoin.
TrueUSD has also depegged several times, notably in June 2023 and again in 2024. Techteryx is currently locked in a legal battle with First Digital, alleging that reserves were improperly transferred to illiquid assets.
The stablecoins market has been one of the best performers in crypto this year, with the signing into law of the GENIUS Act in July further propelling the industry. Circle Internet Group, the issuer of the USDC stablecoin, the world’s second biggest stablecoin by market cap, behind Tether’s USDT, went public in one of the biggest crypto IPOs in history.
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