Circle, the company behind the USDC stablecoin, is reportedly navigating a delicate balance between its ambition to go public and emerging acquisition interest from two of the crypto industry’s biggest players—Ripple and Coinbase. While Circle continues to move forward with its long-anticipated IPO, behind-the-scenes negotiations suggest a possible change in trajectory that could reshape the stablecoin landscape.
Acquisition Talks Cast Doubt Over IPO Path
Although Circle is still committed to its plans for an initial public offering, insiders have indicated that the company is also engaged in informal discussions about a potential sale. Speaking to Fortune, individuals close to the matter revealed that Circle is seeking a valuation of around $5 billion, the same figure it’s targeting through its IPO process.
Despite progress toward public listing, Circle hasn’t finalized the IPO’s structural elements or begun its investor roadshow. And yet, acquisition conversations are heating up, creating uncertainty around the company’s future direction. One investment banker involved in the negotiations stated candidly that Circle would be eager to finalize a deal if Coinbase were to present a credible offer. “If Coinbase wanted to buy them, Circle would sell in a heartbeat,” the banker told Fortune.
A Complex History Between Circle and Coinbase
The relationship between Circle and Coinbase is long-standing and collaborative. The two companies jointly launched the Centre Consortium in 2018, the body initially responsible for USDC’s issuance. In 2023, the consortium structure was dissolved, leading Circle to assume full control of USDC governance, while Coinbase acquired an equity stake in Circle as part of the transition.
Their financial entanglement runs deep. Revenue from USDC reserves is shared between the two firms, with both parties receiving equal portions of the residual revenue. However, Coinbase retains all revenue generated when USDC is held directly on its platform—a significant source of income that has bolstered its financial statements in recent quarters.
Given this close partnership, a merger could be seamless in terms of operational alignment. However, successful integration remains a key consideration. Coinbase CEO Brian Armstrong has expressed interest in pursuing strategic acquisitions but emphasized that any potential deal must come with a clear plan for post-merger execution.
Ripple Emerges as a Strong Contender
Ripple has also entered the race to acquire Circle, reportedly putting forward an initial bid in the range of $4 billion to $5 billion. According to previous report, this proposal was turned down, possibly due to valuation concerns or strategic misalignment. Nonetheless, Ripple’s deep war chest—bolstered by billions in its native digital asset, XRP—could enable it to return with a more competitive offer.
BREAKING: @Ripple and @coinbase now in bidding war for @circle – Sources say @ripple has the upper hand at a 9-11 Billion price tag. #XRP #USDC #CRYPTO
Who do you think wins this bidding war?
— PaulBarron (@paulbarron) May 19, 2025
Any potential acquisition by Ripple would likely be structured using a mix of XRP and fiat, tapping into both its digital reserves and cash holdings. This model could offer significant flexibility, although it may raise questions among regulators and market participants over valuation consistency and market impact.
In a recent update shared on X, industry commentator Paul Barron suggested Ripple may have the upper hand in the bidding war. He estimated a final sale price could reach as high as $9 billion to $11 billion, depending on market dynamics and Circle’s leverage in the negotiations.
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Implications for the Stablecoin Sector
The prospect of either Ripple or Coinbase acquiring Circle would carry wide-reaching implications for the broader crypto ecosystem. As one of the most dominant stablecoins in circulation, USDC plays a pivotal role in DeFi protocols, centralized exchanges, and cross-border payments. Any shift in its governance or ownership would inevitably affect the competitive landscape.
For Ripple, acquiring Circle would dramatically expand its influence in stablecoin markets, potentially complementing its upcoming launch of a USD-backed stablecoin (RLUSD). It would also reinforce Ripple’s long-term strategy of integrating XRP into global financial infrastructure, though some analysts caution that absorbing a company as complex as Circle could distract from Ripple’s core mission.
Meanwhile, if Coinbase were to succeed, the move would solidify its control over both USDC’s governance and distribution, further entrenching its role as a central player in the digital asset economy. It could also set a new precedent for centralized exchanges, deepening their footprint in the stablecoin sector.
A Defining Moment Ahead
While Circle remains publicly committed to its IPO ambitions, the fluid nature of the acquisition talks cannot be ignored. Sources suggest that the next few weeks may prove decisive, with high-level negotiations unfolding rapidly.
Whether Circle chooses to chart an independent course via a public listing or aligns itself with a crypto giant, the decision will undoubtedly reshape stablecoin dynamics and reverberate throughout the digital asset industry. As the competition intensifies, all eyes remain fixed on Circle’s next move—one that could define the future of institutional stablecoin adoption.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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