Stablecoin issuer Circle is continuing preparations for an IPO but is also in active discussions about a potential sale. Coinbase and Ripple are reported to be among the possible buyers. Circle values itself at no less than $5 billion, though no deal has been finalized.
IPO on Hold, but Not Cancelled
In early April, Circle filed for a public listing. Terms and timing of the IPO have not yet been disclosed, and the roadshow has not started. Despite this, sources from four different banking and investment firms report that the company is in talks with Coinbase and Ripple about a potential acquisition. One source said Circle would agree to a deal with Coinbase “in a heartbeat” if a formal offer were made.
Circle and Coinbase have a longstanding partnership. In 2018, they jointly launched the Centre consortium to issue USDC. By 2023, Circle had taken over full control of the stablecoin, while Coinbase retained an equity stake. The two companies continue to share revenue from the interest earned on USDC reserves.
According to S-1 filings, each party receives 50% of residual income from USDC reserves. However, if the tokens are held on the Coinbase platform, the exchange receives 100% of the revenue. Additionally, Coinbase holds veto power over any Circle partnerships that might affect its income from USDC, and it partly controls Circle’s intellectual property in the event of bankruptcy.
Bankers note that Coinbase, as a publicly traded company, has more leverage. With $8 billion on its balance sheet, Coinbase can easily raise additional funds through equity or debt offerings. CEO Brian Armstrong told Bloomberg on May 14 that he is “happy for Circle’s success” and that the IPO “doesn’t change the current relationship.” However, he did not rule out future deals, emphasizing that Coinbase “always considers M&A opportunities.”
Ripple Has Already Made an Offer
Ripple previously offered Circle between $4 billion and $5 billion but was turned down — the offer did not meet Circle’s valuation expectations. Ripple’s bid included a combination of fiat and XRP tokens. As of March 31, Ripple held 4.56 billion XRP (worth approximately $11.77 billion) and an additional 37.13 billion XRP ($95.7 billion) in escrow.
Active Crypto Sector Acquisitions
Coinbase has been on a buying spree in 2025, acquiring the Iron Fish team, the startup Spindle, and the derivatives platform Deribit for $2.9 billion. In April, Ripple agreed to acquire prime broker Hidden Road for $1.25 billion.
While the IPO market has remained sluggish since 2021, eToro’s listing in May renewed optimism — its shares rose nearly 29% on the first day of trading, raising $620 million. This could influence Circle’s final decision regarding its own public listing.
Coinbase Valuation and Outlook
As of May 13, Coinbase shares were trading around $265, with a market capitalization of $56 billion. On the day the company was added to the S&P 500, the stock rose more than 25% in a week. Still, it remains below its December 2024 peak of $349.75.
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