XRP News Today: Circle Files for IPO Amid Potential Sale to Coinbase or Ripple

Circle Internet Financial, the company behind the USDC stablecoin, has filed formal paperwork for an initial public offering (IPO) in early April. However, there are indications that the IPO may not proceed as planned. According to anonymous sources from the banking and private equity sectors, Circle has been informally exploring a potential sale to either Coinbase Global, the leading U.S.-based cryptocurrency exchange, or Ripple, the crypto payments powerhouse.

Circle is aiming for a valuation of at least $5 billion, aligning with its public listing goals. One banker involved in the negotiations stated that Circle would readily agree to a sale if Coinbase were to acquire them. Another source noted that the situation is dynamic and subject to rapid changes. Despite these discussions, Circle remains committed to going public, having filed its S-1 registration with the SEC in April. However, details such as the IPO’s terms and the launch of the investor roadshow are still pending. Circle has emphasized that it is not for sale and that its long-term goals remain unchanged. Both Coinbase and Ripple have not responded to requests for comment.

The relationship between Coinbase and Circle dates back to 2018 when they co-founded the Centre Consortium to issue USDC. This partnership concluded in 2023, with Coinbase acquiring an equity stake in Circle and Circle taking full control over USDC’s governance. The two firms continue to share revenue from USDC reserves, with Coinbase benefiting significantly from this arrangement. Coinbase’s latest earnings reports show a notable increase in income from the USDC partnership, driven partly by the expansion of the stablecoin market. The current agreement gives Coinbase substantial influence over Circle’s operations, including the ability to veto new third-party deals that could affect Coinbase’s USDC revenue. If Circle were to become insolvent, Coinbase would gain control over some of Circle’s intellectual property assets.

Ripple, on the other hand, is a formidable contender with a substantial financial reserve. Ripple reportedly offered between $4 billion and $5 billion to acquire Circle, a bid that Circle declined, considering it undervalued the company. Ripple’s offer would likely combine XRP, the native cryptocurrency it developed, alongside cash. According to Ripple’s Q1 2025 XRP Markets Report, the firm holds about 4.56 billion XRP (valued at approximately $11.77 billion) and another 37.13 billion XRP ($95.7 billion) in escrow as of March 31. Coinbase, however, has a more diversified financial position with $8 billion in cash on its balance sheet as of its March 31 10Q filing. As a publicly traded company, Coinbase may raise additional capital through debt issuance or stock offerings. One banker familiar with the situation commented that although Ripple’s balance sheet is “pretty meaningful,” Coinbase’s position as a public company gives it an edge in the eyes of many investors.

Coinbase CEO Brian Armstrong has expressed enthusiasm about Circle’s success, acknowledging that future deals remain open-ended, though there was “nothing to announce today.” Armstrong highlighted Coinbase’s cautious M&A strategy, noting that while they have the financial resources, the real challenge is integrating acquired companies. Coinbase has been actively expanding its footprint through acquisitions, including the $2.9 billion acquisition of Deribit, a derivatives trading platform, and the acquisition of the Iron Fish team in May. Earlier this year, Coinbase purchased Spindle, a platform for on-chain advertising and attribution. Ripple has also been expanding its footprint, announcing a $1.25 billion acquisition of prime brokerage Hidden Road in April.

The broader IPO landscape, which has remained largely dormant since 2021, received a shot of optimism last week when eToro, the online trading platform, saw its shares leap nearly 29% on its first day of trading. The offering raised $620 million after pricing at $52 per share. This robust debut may bolster Circle’s confidence in pursuing its IPO, though one investor cautioned that the true measure of success lies in the longer-term aftermarket performance. The evolving Circle saga encapsulates the delicate interplay of crypto giants jockeying for dominance in an industry where strategic partnerships, vast token reserves, and public market credibility intersect. Whether Circle ultimately proceeds with its IPO or opts for a high-stakes acquisition, the next chapters promise to reshape the stablecoin landscape—and potentially the broader crypto ecosystem.