Quickly understand the history and background of various well-known coins

Circle Explores Sale to Coinbase or Ripple Amid IPO Plans

Coin WorldTuesday, May 20, 2025 6:08 am ET

1min read

Circle, the issuer of the USDC stablecoin, has been exploring a potential sale to either crypto exchange Coinbase or payments company Ripple, according to a recent report. The New York-based company, which filed for an initial public offering (IPO) last month, has been involved in informal talks regarding a potential acquisition. Circle is seeking a valuation of at least $5 billion, which is in line with the company's valuation by investment banks JPMorgan and Citi, who were hired to assist with the IPO process.

Coinbase, which holds a minority share in Circle, has been in discussions with the company. The two firms share revenue from USDC's reserve interest income. Ripple, which recently launched its own stablecoin, RLUSD, also made an offer to acquire Circle. However, Circle rejected Ripple's offer, citing that it was insufficient. Circle has stated that it is not for sale and remains committed to going public. The company had previously attempted to go public via a special purpose acquisition company (SPAC) merger in 2021, but that effort was ultimately aborted.

These discussions underscore Circle's strategic considerations as it navigates the dynamic stablecoin market. The potential acquisition by either Coinbase or Ripple would significantly impact the stablecoin landscape, given the prominent roles these companies play in the crypto industry. Coinbase's strong financial position and existing ties to Circle make it a formidable potential acquirer. Meanwhile, Ripple's entry into the stablecoin market with RLUSD adds another layer of complexity to the potential acquisition.

Circle's exploration of these options highlights the company's flexibility and strategic foresight in the face of a rapidly evolving market. The potential sale to either Coinbase or Ripple, or the pursuit of an IPO, represents significant milestones for Circle and the broader stablecoin industry. As Circle continues to evaluate its options, the outcome of these discussions will shape the future trajectory of the company and its role in the stablecoin ecosystem.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.