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Circle Internet Financial, the firm behind the USDC stablecoin, has reportedly explored acquisition talks with both Coinbase and Ripple, according to a recent report from Fortune citing sources familiar with the matter.
While the company filed for an initial public offering (IPO) earlier this year, discussions around a possible $5 billion sale suggest alternative strategies are also on the table.
The IPO, initially filed in April, has yet to begin its roadshow or define final offering terms, leaving room for a potential pivot.
Sources with knowledge of the matter claim that Circle has informally discussed a sale to Coinbase or Ripple, seeking a valuation that matches its IPO expectations.
These discussions, though preliminary, reflect shifting dynamics in the crypto industry where consolidation among major players is increasingly likely.
Although Circle publicly maintains that it is not for sale and remains committed to going public, the situation appears fluid. One banker involved in the talks stated, “If Coinbase wanted to buy them, Circle would sell in a heartbeat.”
Coinbase and Ripple: Strategic Suitors
Coinbase, which co-founded the Centre Consortium with Circle in 2018, already has significant ties to USDC. The companies share revenue from USDC reserves, and Coinbase retains favorable terms under their existing agreement.
According to Circle’s S-1 filing, Coinbase earns all revenue from USDC reserves when held on its platform, giving it a financial incentive to support a deal.
Furthermore, Coinbase holds partial control over some of Circle’s intellectual property under specific conditions, enhancing its leverage in any negotiation.
Ripple has also emerged as a serious contender, having reportedly made a $4–5 billion offer that Circle ultimately declined. Ripple's interest comes with substantial backing: the firm’s XRP holdings and cash reserves position it well to make large acquisitions.
Its balance sheet includes over 41 billion XRP in circulation or escrow, which collectively was valued at more than $100 billion as of Q1 2025. Although Ripple’s offer was turned down, it highlights the appeal of Circle’s position in the stablecoin market.
IPO Uncertainty and Market Conditions
Circle's IPO ambitions are part of a broader trend in crypto firms seeking public listings as regulatory scrutiny increases. The firm’s filing in April signaled renewed momentum in public markets, which have been largely quiet for crypto startups since 2021.
Yet the delay in launching a formal IPO roadshow raises questions about its confidence in current market conditions. Competing acquisition interest could shift the strategy if a deal is deemed more viable.
Coinbase CEO Brian Armstrong, speaking to Bloomberg on May 14, said he remained supportive of Circle’s success but did not rule out future deals.
“In terms of other deals we might consider in the future, that would be up to them and us,” he said. Armstrong also highlighted Coinbase’s “pretty large balance sheet” and interest in mergers and acquisitions, noting the exchange’s inclusion in the S&P 500 as a sign of its growing financial strength.
The outcome of Circle’s IPO or sale could reshape the stablecoin sector. USDC remains one of the largest stablecoins by market cap, and any shift in its ownership would reverberate across the digital asset landscape.
