Circle Eyes Coinbase or Ripple Buyout as IPO Plans Hit the Brakes

Another day, another crypto firm playing musical chairs with exit strategies. Circle—the stablecoin giant behind USDC—is reportedly weighing a sale to heavyweights like Coinbase or Ripple after shelving its lackluster IPO plans.

Why now? The timing reeks of desperation—or genius. With regulators circling and competitors gobbling market share, Circle’s move screams ’adapt or die.’ A Coinbase acquisition could cement its dominance, while a Ripple deal might turbocharge cross-border payments. Or maybe they’ll just flip the whole thing to BlackRock and call it a day.

One thing’s clear: in crypto, the house always wins. Even when it’s selling itself.

TLDR

• Circle Eyes Sale Despite IPO Plans
• Coinbase Leads Race to Buy Circle
• Ripple’s XRP Deal Gets Rejected
• Circle’s IPO Hits Uncertainty
• USDC’s Future Hangs in the Balance

Circle Internet Financial is exploring a potential sale while preparing for an initial public offering. The company issues the USDC stablecoin and is holding informal acquisition talks with Coinbase and Ripple. Although the IPO filing remains active, internal discussions suggest a possible shift toward a strategic acquisition.

Coinbase Strengthens Position with Advantageous Terms

Circle and Coinbase maintain DEEP commercial ties dating back to their 2018 launch of the Centre Consortium to manage USDC issuance. Although Centre dissolved in 2023, Coinbase still benefits from favorable terms regarding USDC interest revenue and operational influence. These advantages position Coinbase as a strong candidate in ongoing sales considerations.

JUST IN: $USDC issuer Circle in ‘informal talks’ to sell itself to Coinbase or Ripple – Fortune. pic.twitter.com/vktRrcs8MA

— Whale Insider (@WhaleInsider) May 19, 2025

Coinbase receives 100% of the interest revenue from USDC on its platform, unlike the 50% split on other venues. It also retains veto power over Circle’s third-party deals and distribution partnerships under existing commercial agreements. These terms provide Coinbase with operational control, which may ease integration if a sale proceeds.

Additionally, Coinbase holds equity in Circle and could gain partial rights to Circle’s intellectual property in bankruptcy scenarios. The companies share strategic goals, and their financial alignment remains intact despite the Centre’s dissolution. This long-standing collaboration enhances Coinbase’s chances of securing a deal if Circle moves forward with a sale.

Ripple’s Bid Rejected Amid Token-Based Structure

Ripple reportedly offered to acquire Circle for between $4 billion and $5 billion during April 2025 but faced rejection. Circle turned down the bid due to its structure, which involved a significant portion of the payment in XRP tokens. Despite the nominal value, token-based offers often face steep discounts due to market volatility.

Ripple’s financial position remains strong, with over $11 billion in liquid XRP and additional holdings in escrow worth nearly $95 billion. These assets could fund large acquisitions, yet Circle appears cautious about accepting non-cash deals. The company’s IPO planning and valuation target may have influenced its rejection of the Ripple proposal.

Ripple has continued to pursue expansion, recently acquiring Hidden Road for $1.25 billion to bolster its crypto brokerage capabilities. Although Ripple maintains interest in Circle, current reports suggest Circle favors Coinbase due to its financial structure and closer operational alignment. Ripple’s bid remains under consideration but lacks public advancement.

IPO Path Remains Open But Faces Uncertainty

Circle filed an S-1 FORM with the SEC in early April, signaling intent to go public through a traditional IPO. However, rising macroeconomic uncertainty and shifting U.S. trade policies have caused Circle to reconsider its timeline. Circle has not announced a roadshow or pricing details unlike other firms, leaving plans uncertain.

Recent market examples show mixed signals. eToro raised $620 million during its debut, but other companies like Klarna and StubHub delayed their IPOs. These trends indicate a cautious environment, prompting Circle to assess alternative strategic routes.

Despite the IPO filing, Circle’s management continues to explore acquisition offers as part of its long-term growth strategy. This includes assessing which route provides the best value while maintaining ecosystem control. The outcome may shape the future of USDC and its role in the digital finance market.