Binance affiliates have filed a lawsuit against the founders of Hong Kong-based crypto payments firm RedotPay over the alleged diversion of hundreds of thousands of Binance customers and an alleged breach of contract.

 

In the lawsuit, Binance affiliates Nest Trading Ltd., Distributed Technologies Ltd., and Chaintecs Consulting Singapore Pte. accuse RedotPay cofounders Gao Zhangpeng, Chan Wa Choi, and Yao Chao of violating the terms of an agreement signed by both parties last year.

 

According to the filing, the two companies signed an agreement last year under which Binance said it received assurances that Binance Pay funds would be kept separate from RedotPay's own operations.

 

Under the agreement, Binance users could use RedotPay only for crypto-to-fiat conversions, in-app transfers, or the purchase of RedotPay branded products.

 

However, Binance now claims that RedotPay violated the agreement by allowing and encouraging Binance Pay funds to be used beyond the agreed terms, including to top up RedotPay cards. Binance alleges that this resulted in the diversion of more than 470,000 of its users to RedotPay's competing product, contributing to the company's increased valuation.

 

Estimating the lifetime value of each customer at $925, Binance is seeking about $472.8 million in damages for the more than 470,000 customers it alleges RedotPay diverted to its platform.

 

Responding to the lawsuit in a blog post published on its website, RedotPay said it was confident in its legal position and would vigorously defend itself against all claims. 

 

The lawsuit comes at a time when RedotPay has witnessed significant growth and is considering an initial public offering that could value the company at $4 billion.

 

The company also claims to have grown its user base by more than 33% to over 8 million users in the last six months and to have generated more than $180 million in revenue from an annualised payment volume exceeding $14 billion.

 

 

Mastercard has completed its acquisition of stablecoin payment infrastructure company BVNK.

 

According to Mastercard, the acquisition marks a step toward advancing the company's strategy of enabling seamless value exchange between people and businesses through interoperability between fiat and digital currencies.

 

"In a multi-money world where fiat, stablecoins, tokenised deposits, and other forms of value coexist, the next payments paradigm will be defined by how effectively each rail, network, or form of money connects and works together," said Jorn Lambert, chief product officer at Mastercard.

 

"By combining Mastercard's global network with BVNK's on-chain infrastructure and stablecoin native technology, we can deliver a more efficient, trusted, and seamless payment experience."

 

Mastercard's acquisition of BVNK comes five months after it announced that it had reached a definitive agreement to acquire BVNK for $1.8 billion. The agreement was reached after Coinbase, the principal contender that had also been pursuing an acquisition of BVNK, mutually ended acquisition talks.

 

About BVNK

Founded in 2021, BVNK is a London-based crypto infrastructure company that bridges the gap between traditional finance and blockchain finance.

 

Through its stablecoin payment infrastructure, BVNK makes stablecoins compliant and practical for real-world use. The company also provides the infrastructure that enables businesses, fintechs, and payment service providers to receive, convert, and settle payments across fiat and digital currencies.

 

Prior to its acquisition, BVNK had raised more than $90 million across two seed funding rounds. By the end of 2025, the company had reached an annualised payment volume of nearly $30 billion, onboarded 226 new enterprise clients during the year, and supported payments in more than 230 countries.

 

 

MoneyGram has launched MGUSD, a U.S. dollar pegged stablecoin on the Stellar blockchain network, aimed at facilitating cross border transfers and remittances.

 

According to MoneyGram, the MGUSD stablecoin is designed to serve non crypto native users, particularly people who regularly move money across borders and those with little or no access to local financial services, including individuals living in high inflation markets.

 

 

By launching MGUSD, MoneyGram aims to provide these users with greater financial stability, enabling them to hold and access their dollar denominated MGUSD assets around the clock and convert MGUSD into local currencies whenever they choose, from anywhere in the world and on their own terms.

 

"The stablecoin market has largely focused on the asset itself. MoneyGram is taking a fundamentally different approach. Starting with our distribution platform, we're using stablecoin as a foundation to build future applications on our global network," said Anthony Soohoo, Chairman and Chief Executive Officer of MoneyGram.

 

"MGUSD is the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access."

 

The launch of MGUSD was made possible through partnerships with several companies involved in the project. These include Stellar, which provides the blockchain on which MGUSD is issued; Bridge, a Stripe owned company that serves as the regulated issuer of the stablecoin; M0, which provides the smart contract infrastructure for minting and burning the stablecoin; and Fireblocks, which provides custodial services.

 

MGUSD will be integrated directly into the MoneyGram app through a self custodial wallet that will allow users to view their dollar denominated balances. Although MGUSD has launched in the U.S. market, MoneyGram said it plans to expand the stablecoin's availability globally.

 

About MoneyGram 

MoneyGram is a global financial services company that provides fast, accessible cross border money transfers, particularly for people with limited access to traditional banking services. Its core mission is to make sending money across borders simple, reliable, and accessible to millions of migrant workers and their families.

 

In line with this mission, MoneyGram operates one of the world's largest networks, with nearly 500,000 agent locations worldwide and more than 5 billion endpoints. The company serves more than 60 million active users across 200 countries and territories.

 

 

Flipcash, a digital payment app founded by Ted Livingston, the founder of messaging app Kik, has partnered with Coinbase to launch USDF, a stablecoin pegged to the U.S. dollar.