FDUSD Issuer First Digital Agrees to $250M Nasdaq Deal

First Digital, the issuer of the FDUSD stablecoin, has signed an agreement to merge with Nasdaq-listed SPAC CSLM Digital Asset Acquisition Corp. III, which trades under the ticker KOYN. The deal values First Digital at $250 million before new financing. It was signed Oct. 6, 2026, and is expected to close in the first half of 2027.

The transaction has been approved by both companies’ boards and does not include a minimum cash condition. Completion depends on the U.S. Securities and Exchange Commission declaring a registration statement effective, Nasdaq listing approval, other regulatory clearances and shareholder approval from First Digital and KOYN.

First Digital will move its legal domicile from Gibraltar to the Cayman Islands. KOYN will merge into a new Cayman Islands holding company, while a subsidiary of that company will merge with First Digital. The holding company is expected to become the Nasdaq-listed entity.

First Digital founder and CEO Vincent Chok will receive Class B shares carrying 10 votes per share. Other shareholders will receive Class A shares carrying one vote per share.

The companies also disclosed a nonbinding term sheet with Millennial Trading for a $25 million, zero-interest convertible note. The note would convert at $12 per share. No definitive financing agreement has been signed.

First Digital reported about $87 million in revenue for the fiscal year ended June 30, 2025, according to the transaction announcement. The companies did not disclose fiscal 2026 revenue, profit or the share of revenue generated by FDUSD reserves, custody services and other activities.

FDUSD had a circulating supply of about $325 million on Oct. 7, 2026, according to DefiLlama data. The figure compares with a peak of about $4.04 billion in April 2024 on the same data source. First Digital has reported a higher peak of more than $4.4 billion, based on its own methodology.

First Digital launched FDUSD in 2023 and reported that the token reached a $1 billion market capitalization within four months. The company reported more than $4 trillion in cumulative trading volume through June 30, 2026, with more than 100 trading pairs across 16 exchanges and six blockchains. Binance remains the token’s largest centralized trading venue, according to the announcement.

FDUSD is issued by a First Digital group company and backed by cash and short-term U.S. Treasury bills held by First Digital Trust. The token does not pay interest. First Digital publishes monthly reserve attestations.

First Digital is also developing Finance District, a platform with District Pass for identity services, Agent Wallet for blockchain transactions controlled by artificial-intelligence agents, Prism for merchant payments and an AI assistant. FDUSD is intended to serve as a settlement asset on the platform. Finance District currently generates no material revenue, according to the company.

First Digital holds a Hong Kong trust or company service provider license and two Canadian money-services-business registrations. Its application for a fiat-referenced-token license is pending with Abu Dhabi Global Market.

South Korea is a target market for the company. First Digital has signed memorandums of understanding with an ITCEN Group subsidiary and Wavebridge. The company does not plan to issue a South Korean won stablecoin and plans to open a branch office in South Korea in the first quarter of 2027.

The proposed listing follows a dispute in April 2025, when FDUSD briefly fell to about $0.87 against USDT on Binance after Tron founder Justin Sun questioned First Digital’s solvency. First Digital denied the claim and filed a defamation case against Sun in Hong Kong the next day. The case is expected to be included in the company’s SEC registration filing.