Circle May Sell to Coinbase or Ripple as It Pursues $5B IPO

USDC issuer Circle Internet Financial is in acquisition talks with crypto exchange Coinbase and payments company Ripple while pursuing an Initial Public Offering (IPO), Fortune reports, citing banker sources.

Circle is looking for at least a $5 billion deal, which is the valuation the company is aiming for in the IPO. The crypto company intends to list its shares on the New York Stock Exchange (NYSE), based on its April 2025 filing.

Previously, Circle rejected Ripple’s acquisition offer, according to Bloomberg, because of a low bid.

The Close Tie Between Coinbase and Circle Behind USDC

Circle and Coinbase already share revenue generated from interest on USDC reserves. In 2018, they founded the Centre Consortium, which is responsible for issuing the USDC stablecoin. When their joint venture concluded in 2023, Coinbase acquired an equity stake in Circle, while Circle assumed full governance over USDC.

One of Fortune’s sources, a banker, said: “If Coinbase wanted to buy them, Circle would sell in a heartbeat.”

1. Recent Coinbase earnings reports indicate increasing income from this USDC partnership, reflecting either growth in Coinbase’s share or expansion of the overall stablecoin market.
2. Beyond revenue sharing, Coinbase has a significant influence on Circle’s operations. The agreement requires Circle to obtain Coinbase’s consent before entering into any third-party partnership that could impact Coinbase’s USDC revenue. 
3. Additionally, Coinbase has partial control over Circle’s intellectual property in the event of insolvency. 

These factors suggest that a potential Coinbase acquisition of Circle could further scale their partnership.

Speaking of Circle’s IPO plans and a possible acquisition by Coinbase, the exchange’s CEO, Brian Armstrong, earlier told Bloomberg:

“They’re going public doesn’t change anything about our commercial relationship, but in terms of other deals we might consider in the future, I mean, that, of course, would be up to them and us, but, you know, nothing to announce today”

He added that Coinbase has a strong balance sheet and is always on the lookout for new acquisitions. However, it doesn’t pursue every opportunity, as the hardest part of any deal is successfully integrating it, according to Armstrong.

Ripple’s Chances in the Circle Bid War

While Circle reportedly rejected Ripple’s earlier offer, a renewed bid may still be on the table.

Any potential deal from Ripple would likely involve XRP, the company’s native cryptocurrency. According to Ripple’s Q1 2025 XRP Markets Report, the firm held about 4.56 billion XRP (valued at $11.77 billion) and another 37.13 billion XRP (worth around $95.7 billion) in escrow as of March 31.

A successful acquisition would give Ripple a major foothold in the stablecoin market. Meanwhile, Circle’s upcoming IPO signals its intent to grow independently and strengthen investor confidence. The timing of both moves matters, as they could shape USDC’s future trajectory and the broader dynamics of the crypto ecosystem.

Related: How Jeremy Allaire Built Circle and Made USDC a Stablecoin Giant