How Hong Kong's RedotPay Plans to Expand Global Stablecoin Payments After $100M Raise
Hong Kong-based fintech startup RedotPay has secured over $100 million in a Series B funding round led by Tiger Global and Sequoia Capital China, underlining its ambition to scale stablecoin payment infrastructure globally. The company aims to leverage stablecoins for cross-border payments and remittances, signaling a shift from niche crypto trading applications toward broader mainstream adoption. This development arrives amid growing regulatory scrutiny and evolving market dynamics for stablecoin use in payments.
What happened
RedotPay, which currently provides stablecoin payment services primarily to merchants and financial institutions in Asia, announced a Series B funding round exceeding $100 million. The round was led by major investors Tiger Global and Sequoia Capital China. According to statements from RedotPay’s CEO, the fresh capital will be deployed to enhance the company’s compliance infrastructure and expand its regulatory engagement team.
The company’s platform supports multiple stablecoins, including USDT, USDC, and a proprietary stablecoin developed by RedotPay itself. The startup intends to extend its stablecoin payment services beyond Asia, targeting new markets in Europe and North America. This geographic expansion aims to address current limitations in the stablecoin payments landscape, which has been largely focused on crypto exchanges and regional corridors.
Independent industry data supports the timing of RedotPay’s move. A 2025 Chainalysis report documents a 150% year-over-year increase in stablecoin use for global payments, noting growing adoption in remittances and e-commerce beyond traditional crypto trading. Meanwhile, an International Monetary Fund working paper published in December 2025 highlights ongoing regulatory challenges for stablecoin cross-border payments, emphasizing issues such as anti-money laundering (AML), know-your-customer (KYC) compliance, jurisdictional fragmentation, and consumer protection.
Market analysts and Coindesk coverage interpret RedotPay’s funding round as indicative of stablecoin payment solutions transitioning toward mainstream financial infrastructure, particularly in cross-border contexts. RedotPay’s prioritization of compliance and regulatory engagement reflects an awareness that regulatory acceptance will be critical to scaling stablecoin payments internationally.
Why this matters
The $100 million funding round underscores a broader structural shift in the stablecoin ecosystem, moving beyond crypto trading platforms toward integration with traditional payment and remittance systems. RedotPay’s plans to scale stablecoin payments globally could reduce transaction costs and settlement times in cross-border transfers, a longstanding inefficiency in international finance.
By supporting multiple stablecoins, RedotPay is positioning itself to offer interoperability and flexibility, which may facilitate adoption by diverse users and markets. However, this approach also introduces complexity in regulatory oversight and risk management, given differing compliance requirements and regulatory stances across jurisdictions.
RedotPay’s emphasis on compliance capabilities and regulatory engagement is particularly significant in the current environment, where regulators worldwide are intensifying scrutiny of stablecoins. The IMF’s recent analysis stresses the fragmented regulatory landscape and the challenges that stablecoin providers face in meeting AML/KYC standards and consumer protection mandates. RedotPay’s strategy to expand its compliance team suggests it recognizes these hurdles as key to its international ambitions.
The company’s geographic expansion plans reflect an attempt to overcome the Asia-centric and crypto-exchange-focused nature of stablecoin payments to date. Successful scaling into Europe and North America would mark a notable evolution in the stablecoin payment narrative, potentially influencing how cross-border payments are conducted in the future.
What remains unclear
Despite the detailed announcement of the funding round and strategic intentions, several important questions remain unanswered. RedotPay has not disclosed the specific compliance frameworks or partnerships it will employ to navigate complex regulatory environments in key markets such as the United States and the European Union.
The role and anticipated market share of RedotPay’s proprietary stablecoin relative to established stablecoins like USDT and USDC are not detailed. This omission leaves open questions about market acceptance, regulatory risk exposure, and how the company balances the use of its own token with third-party stablecoins.
It is also unclear how RedotPay plans to handle potential regulatory developments, such as stricter enforcement of the travel rule or new AML/KYC requirements, which could materially impact operational compliance and user onboarding processes.
Furthermore, there is no public information on the scalability of RedotPay’s technology infrastructure to support increased global payment volumes, nor on how the platform will integrate with existing financial systems and payment rails in different regions.
What to watch next
- Disclosures or announcements from RedotPay regarding specific regulatory compliance frameworks or partnerships in the US, EU, and other target jurisdictions.
- Details on how RedotPay plans to deploy its proprietary stablecoin alongside established stablecoins, including any market adoption metrics.
- Updates on RedotPay’s technology scalability and integration capabilities to handle growing transaction volumes and cross-border settlement complexities.
- Regulatory developments affecting stablecoin payments globally, including enforcement trends related to AML/KYC and the travel rule, and how RedotPay responds.
- Expansion progress into European and North American markets, including onboarding of merchants and financial institutions outside Asia.
RedotPay’s recent funding and expansion plans highlight the evolving role stablecoins may play in global payments but also illustrate the significant regulatory and operational challenges ahead. The company’s success in navigating these complexities will be critical to determining whether stablecoins can transition from crypto-centric tools to widely accepted payment infrastructure.
Source: https://www.coindesk.com/markets/2025/12/16/hong-kong-s-redotpay-raises-over-usd100-million-series-b-to-push-stablecoin-payments-globally. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.