First Digital to go public via SPAC merger in down round from $400M peak
What's the deal? Stablecoin issuer First Digital has agreed to merge with CSLM Digital Asset Acquisition Corp IIIDealroom has a profile for this one. Try Dealroom →, a special purpose acquisition company (SPAC), to list on Nasdaq. The companies signed a definitive agreement on October 6, 2026, valuing First Digital at $250 million pre-money, with the listing targeted for the first half of 2027.
What's the context? The news surfaced via a Form 425 filing disclosing a podcast appearance by CSLM co-chief executive officer Vik Mittal, who detailed the deal and the firm's investor engagement. The transaction is a down round: First Digital's prior capital raise valued the company at about $400 million.
What does First Digital do? It issues FDUSD, a dollar-pegged stablecoin, and is pushing digital payments in underbanked markets across South and East Asia. Binance holds a 25% stake and is a key strategic partner, while HongShan, formerly Sequoia China, holds governance rights.
Why now? Stablecoins are drawing growing public-market interest. CircleDealroom has a profile for this one. Try Dealroom → is already listed, and tokenization firm Securitize is pursuing its own SPAC merger.
What could go wrong? The merger has no minimum-cash condition and still needs shareholder, regulatory, and other approvals, leaving completion and closing capital uncertain. First Digital is also suing Justin Sun and related parties for defamation, and it has revised its revenue-sharing agreement with Binance.
The signal: First Digital is a small challenger in a market dominated by Tether and Circle, and FDUSD has retreated sharply from earlier peaks amid reduced Binance support. That makes the deal's valuation and growth claims worth testing against the issuer's underlying business as public-market appetite for stablecoins builds.
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