RedotPay, a Hong Kong crypto payment card company, is considering a confidential U.S. IPO filing before the end of the year at a valuation of at least $5 billion, Bloomberg reported on Oct. 26, citing people familiar with the matter. The company is also in talks with investors for a pre-IPO round at a $4 billion to $5 billion valuation.
Founded in 2023, RedotPay lets users top up accounts with stablecoins such as USDT and USDC, then spend through its Visa card at merchants worldwide. The system converts crypto into fiat at the point of payment.
Bloomberg reported in August that RedotPay had delayed its listing plan because of regulatory and legal issues, a claim the company disputed afterward. In the same month, a Binance-linked entity sued RedotPay’s three co-founders in Hong Kong, seeking about $470 million. No ruling has been issued in that case.
RedotPay’s valuation has climbed quickly. After crossing $1 billion in September last year, the company is now aiming for $5 billion, roughly a fivefold increase in a little over a year. That jump has put the focus on two questions: whether growth can still support the price, and whether the company’s compliance setup is strong enough for public markets.
Fast valuation gains, backed by headline operating metrics
RedotPay has moved quickly on fundraising and listing preparation. In September 2025, it raised $47 million at a valuation above $1 billion. In December, it completed a $107 million Series B led by Goodwater Capital. Bloomberg first reported in February this year that the company was planning a U.S. listing at a valuation above $4 billion.
The latest report said JPMorgan, Goldman Sachs, Jefferies, and Barclays are involved in the IPO process. Barclays had not previously been disclosed.
According to Bloomberg’s sources, RedotPay now has more than 9 million customers, annualized revenue above $180 million, an operating margin above 50%, and revenue growth of more than 50% in the first three quarters of the year.
At a $5 billion valuation, RedotPay would be valued at about 28 times annualized revenue. Using its operating margin as a rough guide, that implies an operating profit multiple of about 55 times. For comparison, publicly listed stablecoin issuer Circle was trading at roughly 50 times earnings in late October.
Year-over-year growth remains strong, but recent momentum has flattened
On a year-over-year basis, RedotPay still looks strong, though that performance is helped by a low base from last year.
Data from crypto card platform Paymentscan shows RedotPay processed about $3.08 billion in card spending in the first three quarters of this year, up about 64% from $1.87 billion in the same period last year. In the first half of last year, its monthly spending ranged from $140 million to $220 million.
Paymentscan notes that RedotPay’s card spending figures on the platform are self-reported by the company, while top-up data comes from on-chain tracking.
The more recent picture is less dynamic. In September, RedotPay recorded $537.9 million in on-chain top-ups, little changed from $534.4 million in August. Card spending was $403.2 million in September, versus $403.6 million in August.
Competitors kept growing faster over the same period. Paymentscan’s ranking shows RedotPay’s spending rose 12.9% over the past 90 days, while EtherFi and KAST grew 42.5% and 35.5%, respectively.
Revenue growth also lagged behind capital inflows. From November last year to August this year, RedotPay’s monthly top-up volume increased 68.4%, while the company’s disclosed annualized revenue rose from $150 million to $180 million, an increase of about 20%. During that stretch, the company also raised its foreign exchange fee and ATM withdrawal fee. Public information does not show whether the gap came from lower revenue per unit or changes in non-card businesses.
The market is expanding, but RedotPay’s share is shrinking
While RedotPay’s growth has slowed, the stablecoin card segment is still expanding. Paymentscan data shows monthly crypto card spending topped $1 billion for the first time in July, about triple the level from a year earlier, and rose again to about $1.23 billion in September.
As the market grew, RedotPay’s relative position weakened. Among roughly 30 card projects tracked by Paymentscan, RedotPay once accounted for more than 90% of spending in 2024. By September this year, that share had fallen to about 33%.
Its own spending volume still increased over that period, but the shift in share was driven mainly by rapid growth from newer entrants including EtherFi, KAST, and Plasma One.
Part of that catch-up reflects lower barriers to issuing cards. Infrastructure provider Rain is a principal member of both Visa and Mastercard, provides issuing services to more than 200 companies, and completed a Series C in January at a $1.95 billion valuation. Brands that connect to platforms like Rain can launch card products in a relatively short time.
By contrast, RedotPay’s edge has been more distribution-driven. In a January report titled "How did RedotPay reach a $2 billion valuation in three years?", ChainCatcher said the company built early user acquisition through offline distribution networks in emerging markets such as Nigeria, Brazil, and Southeast Asia, using local KOLs, OTC merchants, and community leaders.
That model depends on relatively high fees and referral incentives. Public information shows RedotPay charges $10 for a virtual card and $100 for a physical card. Paymentscan’s testing found an all-in markup of about 2.2% to 2.3% on foreign currency spending. Referrers can receive 20% to 40% of card opening fees and 0.05% to 0.25% of transaction volume, with second-tier referrers also sharing in the payout.
That means distribution costs are embedded in the business rules. If competition pushes fees lower, the room left for referral incentives also narrows. Paymentscan said RedotPay is better suited as a bridge between stablecoins and local payment systems, while many users in the U.S. and Europe often have more competitive local alternatives.
In July, Swiss payment platform Fiat24 suspended crypto asset top-ups, and Paris startup Kulipa stopped operating because of debt repayment issues, disrupting card programs tied to about 20 wallets and fintech companies. Rising issuance, settlement, and compliance costs are pushing smaller players out of the market.
Japan restructuring and Binance lawsuit remain unresolved
In late October, RedotPay announced the acquisition of Japanese crypto exchange BTCBOX. In that announcement, the company acknowledged that it does not hold a crypto asset exchange service provider license in Japan and that its existing services for Japanese residents do not comply with local regulatory requirements.
RedotPay has suspended new user registrations in Japan and removed its app from local app stores. Existing services will be gradually restricted and then terminated. BTCBOX had suspended all services in January after a customer information leak and resumed operations in stages in August. Transaction amounts were not disclosed.
The Binance-related lawsuit has drawn even more attention. Bloomberg reported in August, citing Hong Kong court filings, that a Binance-linked entity accused RedotPay of breaching a cooperation agreement by diverting more than 470,000 users from Binance Card to RedotPay. It is seeking $472.8 million from the company’s three co-founders, based on a lifetime value of $925 per user.
The dispute centers on fund segregation. Under an agreement signed in March 2025, funds from Binance Pay were not allowed to be used for RedotPay card top-ups. Binance said it discovered the breach in March this year and terminated the partnership in April.
RedotPay denied the allegations and said it would defend itself. The Hong Kong case is still pending. ChainCatcher also said that at least five executives have left the company over the past year, and its head of legal departed in July.
Licenses have expanded, but U.S. business is not live
RedotPay has added several licenses this year. In March, it obtained a VASP license in Argentina and MSB registrations in Canada and the United States. In June, it completed VASP registration in Mexico. In August, it secured its first U.S. state-level money transmitter license, with applications pending in more than 20 other states. In September, it obtained lending licenses in two more states.
Those additions mainly relate to a U.S. business that has not yet launched. RedotPay said in August that its $180 million in annualized revenue and about $14 billion in annualized payment volume were both processed through regulated payment processors outside the United States, and that its card product had not yet launched in the U.S.
In September, the company said it had completed an anti-money laundering review conducted by one of the Big Four accounting firms. The review covered two of its licensed Hong Kong subsidiaries and used guidance from the Hong Kong Companies Registry as the benchmark.
On card issuance, RedotPay’s website says its cards are issued by Singapore-based Xfers under a Visa license, with RedotPay operating the card program as the program manager. That differs from companies such as Rain that hold principal membership with card networks, leaving RedotPay dependent on external institutions in this part of the stack.
ChainCatcher had also previously noted that RedotPay’s yield and lending businesses sit in a legal gray area. Both are still operating, and the yield product is included in paid membership benefits. Their regulatory treatment remains unsettled.
Prospectus disclosures may become the real valuation test
RedotPay still shows strong year-over-year growth, but its on-chain top-ups and card spending have both flattened over the past two months, and revenue growth has trailed the rise in funds flowing through the platform. At the same time, newer competitors are scaling faster, while the Japan restructuring and unresolved lawsuit show that the company’s compliance structure is still being adjusted.
RedotPay has already completed a financial audit by a Big Four accounting firm. If it files before year-end as planned, the prospectus will likely be the key document for testing the $5 billion valuation, especially its disclosures on quarterly revenue, revenue mix, user geography, and litigation risk.
