First Digital seeks NYSE listing via SPAC merger with CSLM to expand stablecoin business

Published: 2025-12-01 15:46:08 |

First Digital Group, the Hong Kong-based issuer of stablecoin FDUSD, plans to go public by merging with SPAC CSLM Digital Asset Acquisition Corp III (CSLM), according to Bloomberg sources. The company will sign a non-binding letter of intent outlining the deal. FDUSD currently has about $920 million circulating, down from a peak near $4.4 billion in April 2024. First Digital also serves as trustee managing reserves for TrueUSD, a stablecoin operated by Techteryx, whose adviser is Sun Yuchen (Justin Sun). The move would list First Digital in New York, potentially raising its profile and access to U.S. capital markets amid tighter stablecoin oversight globally. Key keywords: First Digital, FDUSD, SPAC, CSLM, stablecoin, TrueUSD, Justin Sun.

Neutral

The news is market-neutral overall. A SPAC-led U.S. listing for First Digital increases institutional visibility and potential capital for expansion, which is bullish for the company’s stablecoin business and could support FDUSD liquidity. However, FDUSD’s circulating supply has contracted sharply from its April 2024 peak, indicating reduced market demand or redemptions, which is a bearish signal for immediate price/peg pressure. Regulatory scrutiny around stablecoins and connections to known industry figures (Justin Sun as an adviser to Techteryx) add compliance and reputational risk that could temper investor enthusiasm. Historically, SPAC listings of crypto firms (and stablecoin issuer developments) have produced muted to mixed market reactions: they can lead to medium-term institutional interest but rarely trigger immediate broad crypto rallies. Traders should expect limited short-term price impact on major crypto (BTC, ETH), while FDUSD and related trading pairs might see volatility around deal announcements, regulatory news, or reserve disclosures. Key near-term indicators to watch: FDUSD supply/redemption trends, any SEC or NY regulatory commentary, CSLM deal terms (valuation, proceeds), and liquidity on exchanges. Long-term, a successful U.S. listing could be mildly bullish for FDUSD adoption and perceived credibility, but outcomes depend on transparency of reserves, regulatory compliance, and market conditions at listing.