Circle, the issuer of the USDC stablecoin, is considering a $5 billion sale to either Coinbase or Ripple as it prepares for a public listing. This is according to multiple sources close to the matter as the market becomes more uncertain and capital strategies shift across the crypto industry.
This is a reflection of the industry consolidation pressure and the unique position of stablecoin providers in the market today.
USDC Issuer Wants $5 Billion Valuation Amid Bidding War
News sources have learned that Circle has had informal acquisition talks in recent weeks and is considering Coinbase or Ripple. Sources familiar with the situation say Circle is demanding a minimum valuation of $5 billion. Bloomberg earlier reported that Ripple had made an offer within that range but Circle declined, citing concerns over the structure and mechanics of the offer.
Ripple’s offer was reportedly a significant portion of XRP tokens which, while marked to market, are subject to pricing discounts if liquidated by a third party like Circle. This may have effectively reduced the value of the offer in the eyes of Circle’s leadership as the company prepares for a traditional IPO.
Between Coinbase and Ripple: Coinbase a Preferred Buyer
Despite rejecting Ripple’s offer, talks with Coinbase are still ongoing. Insiders say Circle would sell to Coinbase in a heartbeat. The two companies already share USDC revenue and governance responsibilities via the Centre Consortium.
A source told Fortune Crypto,
“If Coinbase wanted to buy them, Circle would sell in a second.”
Coinbase has not publicly confirmed acquisition talks with Circle but CEO Brian Armstrong has said the company is open to strategic buys. In an earlier statement to Bloomberg, Armstrong said Coinbase is looking for “like-minded” companies internationally, especially those that can accelerate product innovation.
IPO Plans Still on Track But Uncertainty Lingers
While Circle hasn’t ruled out the IPO, macroeconomic volatility is forcing a re-evaluation. In April, Circle filed a Form S-1 with the SEC signaling its intention to go public. But as reported by the Wall Street Journal, the company has been quietly considering a delay due to broader market pressures including US trade policies and investor appetite.
Circle isn’t the only one. Other private companies like Klarna and StubHub have also put their IPO plans on hold. Klarna’s $15 billion listing was pulled at the last minute and StubHub cancelled its IPO roadshow for the same reasons.
Circle at a Crossroads
For Circle, this is a crossroad. A successful IPO would hold its stance in the stablecoin space as USDC faces headwinds from competitors like Tether (USDT). Or a high value sale to Coinbase or Ripple would bring faster liquidity and less regulatory risk.
Ripple is still interested despite the initial rejection. A source familiar with the matter told Bloomberg that Ripple views Circle as an asset that could complement its growing enterprise crypto services. But unless Ripple comes back with an all-cash offer that meets Circle’s $5 billion floor, any deal is likely out.
Conclusion: Regulatory and Market Pressure
As the crypto space gets more regulated and the market gets more uncertain, stablecoin providers like Circle are under pressure to scale sustainably. US lawmakers are calling for tighter oversight of fiat-backed tokens and the SEC is scrutinizing digital asset offerings.
In this environment, considering either Coinbase or Ripple, Circle’s leadership is weighing IPO risks against the stability of being acquired by a larger, better-capitalized partner. The outcome will model the future of USDC, especially as Coinbase moves into new markets like crypto derivatives and tokenized assets.
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FAQs
Why is Circle considering selling to Coinbase or Ripple if it already filed for an IPO?
Circle is facing unpredictable market conditions and investor caution, so a sale is a faster path to liquidity and growth than an IPO that might get delayed.
Why did Circle reject Ripple’s offer?
Ripple’s offer, valued at $4–5 billion, was partially in XRP tokens. Due to pricing volatility and liquidation concerns, Circle deemed it insufficient.
Is Coinbase really interested in buying Circle?
Coinbase hasn’t confirmed negotiations but its CEO has said it’s open to strategic acquisitions. Sources say Coinbase would be a good buyer given existing business ties.
What if Circle delays its IPO?
A delay could give Circle more time to adjust its valuation and timing but may also mean missed investor interest or changes in regulatory landscapes.
Will Ripple make another offer?
Ripple is still considering Circle as an acquisition target but the structure and pricing of any future offer would need to change to be viable.
Glossary
USDC (USD Coin): dollar-pegged stablecoin issued by Circle, widely used in crypto trading and DeFi applications.
IPO (Initial Public Offering): process by which a private company offers its shares to the public for the first time on a stock exchange.
Form S-1: registration document filed with the SEC by companies planning to go public in the United States.
XRP: token in the Ripple network, used in cross-border payments.
Stablecoin: cryptocurrency pegged to a specific value (in this case, the US dollar.
Sources
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