Circle, the issuer of the USDC stablecoin, has taken significant steps toward an initial public offering (IPO). However, recent reports suggest that the IPO may face uncertainty as the company engages in informal discussions about a potential sale to either Coinbase Global or Ripple.
Circle Would Sell To Coinbase ‘In A Heartbeat’
According to sources familiar with the negotiations who spoke with Fortune, Circle is looking for a valuation of at least $5 billion, the same sum it is aiming for its IPO. A banker engaged in the discussions said that if Coinbase made a genuine offer, Circle would likely take it swiftly, highlighting the two businesses’ close relationship.
“If Coinbase wanted to buy them, Circle would sell in a heartbeat,” the source noted. Another executive remarked that the situation is fluid, with developments occurring on a weekly basis.
Despite the ongoing talks, Circle remains committed to its IPO plans. The firm has yet to finalize the terms for the offering or launch its roadshow. Notably, both Circle and Coinbase have a history together; they co-founded the Centre Consortium in 2018, which is responsible for issuing USDC.
As part of their partnership, Coinbase acquired an equity stake in Circle when the venture concluded in 2023, while Circle took full governance of USDC.
The financial arrangement between Circle and Coinbase has been mutually beneficial, with both companies sharing revenue generated from USDC’s reserves. According to Circle’s S-1 filing, the agreement stipulates that each party receives 50% of the residual revenue from the reserves.
However, Coinbase retains 100% of the revenue when USDC is held on its platform, a situation that has likely become more prevalent as Coinbase’s earnings reports indicate increased income from this partnership.
Expert Claims Ripple Has Advantage
Ripple, on the other hand, has also expressed interest in acquiring Circle, reportedly offering between $4 billion and $5 billion for the company. This bid was rejected as being too low, according to a Bitcoinist report.
Any potential offer from Ripple would likely involve a combination of its native cryptocurrency, XRP, and cash, leveraging Ripple’s substantial balance sheet, which includes billions of dollars worth of XRP.
In contrast, Coinbase could finance an acquisition using cash and stock, as it had approximately $8 billion in cash as of March 31, 2025. Coinbase CEO Brian Armstrong has acknowledged the company’s openness to mergers and acquisitions but emphasized the importance of successful integration following a purchase.
However, according to market expert Paul Barron’s update on the matter on social media site X (formerly Twitter) this Monday, Ripple has an advantage in acquiring the stablecoin powerhouse, with a potential price tag of $9 to $11 billion.
XRP, on the other hand, is trading at $2.38, up 14% on the month. Year-to-date, the altcoin has outperformed the top ten largest cryptocurrencies on the market, with a 367% increase.
Featured image from DALL-E, chart from TradingView.com
