CryptoSlate
Binance-affiliated entities have filed a Hong Kong petition against RedotPay's founders, alleging the stablecoin-card startup used its Binance partnership to divert more than 470,000 Binance Card customers into its own competing product. Binance claims $472.8 million in losses built on an estimated $925 lifetime value per customer, and says roughly $304 million in user funds flowed through Binance Pay to RedotPay.
Why it matters
RedotPay now serves more than 8 million users and processes roughly $14 billion in annualized payment volume, a scale that reportedly has the company weighing an IPO at a valuation above $4 billion. Binance alleges that growth came partly from customers RedotPay was never supposed to have. The value of a stablecoin product sits in whichever app the customer opens every day to spend, top up, or check a balance: that app captures conversion fees, card-spending revenue, merchant data, and the next product sale. Binance argues RedotPay used a funding rail built for one purpose to forge a direct relationship with those same customers.
Market impact
The case is a public version of a fight now playing out across the industry. Circle pays Coinbase for USDC distribution and shares reserve economics on balances held inside Coinbase products, per Circle's public filings, while Coinbase also backs the rival Open USD model alongside Visa and Mastercard. Mastercard agreed to acquire stablecoin infrastructure firm BVNK for up to $1.8 billion to buy control of the plumbing underneath every issuer and partner. Funding routes can disappear with little notice, rewards can tilt toward whichever stablecoin a partner wants to promote, and disputes like Binance's against RedotPay are becoming a routine cost of doing business.
Frequently asked questions
-
How many Binance Card users did Binance allege RedotPay diverted?
Binance claims more than 470,000 Binance Card customers were diverted into RedotPay's competing stablecoin card product through the Binance Pay funding rail.
-
How much is Binance claiming in damages from RedotPay?
Binance is claiming $472.8 million in losses, built on an estimated $925 lifetime value per diverted customer, and says roughly $304 million in user funds were routed through Binance Pay.
-
How large is RedotPay now, according to the company?
RedotPay says it serves more than 8 million users, processes roughly $14 billion in annualized payment volume, and is reportedly weighing an IPO at a valuation above $4 billion.
-
What is RedotPay's response to the lawsuit?
RedotPay denies the allegations and says the case will not affect its daily operations.
-
How does this case fit into broader stablecoin partnership dynamics?
It mirrors tensions visible across the stack, including Circle's reserve-sharing with Coinbase for USDC distribution and Mastercard's agreement to acquire BVNK for up to $1.8 billion to control stablecoin payment infrastructure.
TheBlock
Crypto News
CoinDesk