As stablecoins gain adoption in the global financial
system, a high-stakes power play is emerging behind the scenes. In early April,
Circle filed paperwork to go public in the U.S., aiming for a valuation of at
least $5 billion.
Circle, the company behind USDC, is now caught in a crucial
moment, publicly pursuing an IPO while quietly exploring a potential sale to
two crypto heavyweights: Coinbase and Ripple, Fortune reported.
However, that IPO plan may never make it to Wall Street.
Four executives in banking and private equity say Circle has been in informal
sale discussions with both Coinbase and Ripple, which could upend its public
listing.
Behind the IPO Curtain
Though Circle remains committed to going public, it
hasn’t yet launched its IPO roadshow or finalized terms. The lack of momentum
leaves room for other outcomes.
Coinbase received an equity stake in Circle, and both
companies still share revenue from USDC’s reserves. Crucially, Coinbase earns
all of the reserve revenue when USDC is held on its platform, an increasingly
frequent occurrence, judging by its earnings reports.
According to Circle’s S-1 filing, the current
agreement grants Coinbase far more than just revenue. Circle needs Coinbase’s
consent to forge major new partnerships for USDC. Coinbase also has partial
rights to Circle’s intellectual property if Circle becomes insolvent.
These terms make Coinbase not just a partner, but a
natural acquirer. With $8 billion in cash and a $56 billion market cap, the
publicly traded exchange has the financial firepower to close a deal swiftly.
Its recent addition to the S&P 500 has only added momentum.
Ripple Makes Its Bid
Ripple is also in the mix, having reportedly offered
$4–5 billion to acquire Circle. That offer was rejected as too low, but Ripple
has the resources to try again. It holds roughly $11.8 billion worth of XRP and
nearly $96 billion more in escrow. Any new bid would likely combine XRP and
cash.
🚨 Circle Rejected Ripple Takeover Bid of $4-5B https://t.co/6VPRVN5hZx pic.twitter.com/mP3Ff6EEKU
— matthew sigel, recovering CFA (@matthew_sigel) April 30, 2025
Stablecoins like USDC are increasingly seen as the
digital twin of the U.S. dollar. Control over Circle could mean influence over
a core component of tomorrow’s financial infrastructure.
Circle’s IPO ambitions remain intact for now. The
recent success of eToro’s debut, its shares jumped 29% on the first day, may
encourage Circle to follow through. However, sources close to the matter suggest that an
acquisition remains a very real possibility.
As stablecoins gain adoption in the global financial
system, a high-stakes power play is emerging behind the scenes. In early April,
Circle filed paperwork to go public in the U.S., aiming for a valuation of at
least $5 billion.
Circle, the company behind USDC, is now caught in a crucial
moment, publicly pursuing an IPO while quietly exploring a potential sale to
two crypto heavyweights: Coinbase and Ripple, Fortune reported.
However, that IPO plan may never make it to Wall Street.
Four executives in banking and private equity say Circle has been in informal
sale discussions with both Coinbase and Ripple, which could upend its public
listing.
Behind the IPO Curtain
Though Circle remains committed to going public, it
hasn’t yet launched its IPO roadshow or finalized terms. The lack of momentum
leaves room for other outcomes.
Coinbase received an equity stake in Circle, and both
companies still share revenue from USDC’s reserves. Crucially, Coinbase earns
all of the reserve revenue when USDC is held on its platform, an increasingly
frequent occurrence, judging by its earnings reports.
According to Circle’s S-1 filing, the current
agreement grants Coinbase far more than just revenue. Circle needs Coinbase’s
consent to forge major new partnerships for USDC. Coinbase also has partial
rights to Circle’s intellectual property if Circle becomes insolvent.
These terms make Coinbase not just a partner, but a
natural acquirer. With $8 billion in cash and a $56 billion market cap, the
publicly traded exchange has the financial firepower to close a deal swiftly.
Its recent addition to the S&P 500 has only added momentum.
Ripple Makes Its Bid
Ripple is also in the mix, having reportedly offered
$4–5 billion to acquire Circle. That offer was rejected as too low, but Ripple
has the resources to try again. It holds roughly $11.8 billion worth of XRP and
nearly $96 billion more in escrow. Any new bid would likely combine XRP and
cash.
🚨 Circle Rejected Ripple Takeover Bid of $4-5B https://t.co/6VPRVN5hZx pic.twitter.com/mP3Ff6EEKU
— matthew sigel, recovering CFA (@matthew_sigel) April 30, 2025
Stablecoins like USDC are increasingly seen as the
digital twin of the U.S. dollar. Control over Circle could mean influence over
a core component of tomorrow’s financial infrastructure.
Circle’s IPO ambitions remain intact for now. The
recent success of eToro’s debut, its shares jumped 29% on the first day, may
encourage Circle to follow through. However, sources close to the matter suggest that an
acquisition remains a very real possibility.
