Circle Considers Selling to Coinbase or Ripple Amid IPO Plans, Report Indicates

Fortune reports that Circle is exploring potential acquisitions, with Coinbase emerging as a key contender.

Circle Internet Financial, the organization behind USDC (USDC), is advancing with plans for its initial public offering. Meanwhile, the stablecoin firm has begun informal talks about a possible sale with both Coinbase and Ripple (XRP).

According to Fortune, Circle reportedly targets a $5 billion valuation, regardless of whether it opts for public markets or sells to a buyer.

Coinbase is the most likely acquirer

A banker commented, “If Coinbase were interested in acquiring them, Circle would agree in a heartbeat.” While the IPO plans continue, specific terms or roadshow details remain undisclosed.

Coinbase seems to be the most plausible buyer, as both companies co-founded the Centre Consortium in 2018 to launch USDC and still share revenue from reserve interest.

Coinbase holds favorable terms, receiving a full 100% of revenue from USDC stored on its platform. Furthermore, Coinbase possesses significant influence over Circle’s partnership decisions and intellectual property rights.

Ripple has also shown interest, allegedly making an offer between $4 billion and $5 billion, which was declined.

Ripple could leverage its extensive XRP reserves—valued at over $100 billion, including tokens in escrow—to fund a deal.

However, Coinbase’s $8 billion cash reserve and its ability to raise additional funds through public markets give it a stronger financial foothold. Coinbase CEO Brian Armstrong indicated on May 14 that Circle’s IPO doesn’t change their business relationship, though he hinted at potential future collaboration, according to Fortune.

This year, Coinbase has ramped up its merger and acquisition activities, securing firms like Deribit and Spindle. While Circle’s IPO ambitions may gain traction from eToro’s recent successful listing, the option for a strategic sale remains on the table.