Binance-affiliated entities have filed a Hong Kong petition against RedotPay's founders, alleging the payment startup diverted more than 470,000 Binance Card customers into its own competing stablecoin card. Binance claims $472.8 million in losses, while RedotPay denies the allegations and says it now serves more than 8 million users with a possible IPO above $4 billion in view.
Binance-affiliated entities filed a Hong Kong petition against RedotPay's founders, alleging the payment startup used its partnership with Binance to divert more than 470,000 Binance Card customers into its own competing stablecoin card. As Bloomberg News reported, Binance claims $472.8 million in losses, built on an estimated $925 lifetime value per customer. Binance also says RedotPay received roughly $304 million in user funds routed through Binance Pay.
RedotPay denies the allegations and says the case will not affect its daily operations. The company says it now serves more than 8 million users and processes roughly $14 billion in annualized payment volume, a scale that reportedly has it considering an IPO at a valuation above $4 billion.
A funding rail turned into a rival product
Binance alleges that scale came partly from customers RedotPay was never supposed to have. The value of a stablecoin product lies in whatever app a customer opens daily to spend, top up, or check a balance, and that app captures conversion fees, card-spending revenue, and merchant data. Binance claims RedotPay used a funding rail meant for one purpose — routing Binance Pay top-ups — to build a direct relationship with those same customers instead.
The same tension runs across the industry
Other stablecoin partnerships show the same structure without a lawsuit attached. Circle pays Coinbase for USDC distribution and shares reserve economics tied to how much USDC sits inside Coinbase's products, while Coinbase also backs Open USD, a rival stablecoin model built with Visa, Mastercard and more than 140 other companies.
Visa's cards give Stripe-owned Bridge merchant reach, while Bridge gives Visa a route into wallet-native crypto spending, and both companies keep expanding beyond that arrangement. Mastercard has agreed to acquire stablecoin infrastructure firm BVNK for up to $1.8 billion, buying the plumbing beneath a crypto partner list that includes Binance, Circle, and PayPal — many of whom compete directly with each other.
Customers, not just tokens, become portable
The stakes are concrete for users of these products. A top-up route that works today can stop working if a partnership ends, and rewards can tilt toward whichever stablecoin a company wants to promote; cards can also be migrated to a new issuer with little warning. Companies keep using partner rails to acquire users, then quietly build their own card, wallet, or stablecoin to keep them — and disputes like Binance's against RedotPay become a routine cost of doing business.
Source: CryptoSlate
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