Despite filing for an initial public offering last month, Circle Internet Financial—the company behind the USDC stablecoin—has reportedly held discussions about a possible sale to Coinbase Global or Ripple, according to Fortune, which cited sources familiar with the matter.
The future of Circle’s IPO
Circle remains committed to pursuing an IPO but has not yet scheduled a roadshow or disclosed specific terms. The company is believed to be targeting a valuation of at least $5 billion, whether through public markets or a strategic acquisition.
Behind the scenes, talks with Coinbase and Ripple have reportedly gained momentum, signaling a dual-track approach that gives Circle flexibility to choose between an IPO and a private sale depending on market conditions.
Coinbase emerges as the most likely buyer
Coinbase is widely viewed as the most probable acquirer, in large part because of its close commercial ties to Circle and its governance influence over USDC. The two firms co-founded the Centre Consortium in 2018 to launch the dollar-backed stablecoin. Although Centre was dissolved in 2023, the legacy of that partnership continues to shape their relationship.
Following the consortium’s dissolution, Coinbase acquired an equity stake in Circle and retained substantial operational leverage over the stablecoin issuer. Insiders say Coinbase’s influence includes contractual rights tied to bankruptcy scenarios and approval authority over significant distribution agreements or partnerships involving USDC revenue.
These provisions, embedded in existing agreements, suggest Coinbase has considerable sway in Circle’s strategic direction. As a result, many industry observers see Coinbase as the logical buyer, given its strong balance sheet and deep operational integration with Circle.
From a financial perspective, Coinbase appears well positioned to pursue such an acquisition. With roughly $8 billion in liquid reserves and the ability to raise additional capital through public markets, the exchange has the firepower to make a competitive bid.
Moreover, Coinbase currently receives 100% of the revenue generated by USDC held on its platform, making a full acquisition potentially attractive as a long-term revenue play.
Ripple’s $4–5 billion offer
Ripple has not been ruled out. Backed by a large XRP token reserve—valued at over $100 billion when escrowed holdings are included—Ripple reportedly made an offer in the $4–5 billion range. Circle ultimately rejected the approach as it pursues a higher valuation.
Despite the rejection, Ripple’s significant capital reserves mean it could remain a contender if circumstances change and negotiated terms become more favorable.
As Circle weighs its options, the company’s decision will likely depend on market conditions, investor appetite, and the comparative advantages of an IPO versus a private sale. Recent successful public listings in the sector may bolster confidence in an IPO, while strategic synergies offered by a sale—especially to Coinbase—could present an irresistible case for shareholders and management alike.