Will Circle Be Sold to Coinbase or Ripple? Here’s What We Know

Circle, the company behind the second-largest stablecoin USDC, is making headlines as it considers two big moves — going public or possibly being acquired. While Circle has already filed for an initial public offering (IPO) in the United States, new reports suggest that the stablecoin issuer wants to sell its business to crypto giants like Coinbase or Ripple.

According to news media Fortune, four individuals familiar with the matter revealed details about a potential sale of the stablecoin company to one of the crypto firms. These individuals confirmed that Circle seeks at least $5 billion from its potential buyer. Still, they noted that things change each week, making the sale more challenging. Reiterating that the stablecoin issuer is heavily interested in a possible acquisition, one of them stated:

“If Coinbase wanted to buy them, Circle would sell in a heartbeat.”

Circle’s IPO Exploration

Last month, Circle submitted its IPO application to the U.S. Securities and Exchange Commission (SEC). If the application was successful, Circle targeted a valuation of around $5 billion. However, the crypto market’s instability at the time contributed to the delay of the IPO process. Currently, there remains uncertainty about approval for the company’s IPO plan.

A few weeks ago, Ripple reportedly offered to buy Circle for $4 billion or $5 billion. However, Circle rejected the offer, saying it was too low. At the same time, Coinbase is said to be considering an offer of its own. This wouldn’t be too surprising, as Coinbase and Circle have worked together for years, especially through their joint role in launching and managing USDC.

What This Could Mean for Coinbase and Ripple

Coinbase’s ownership of Circle would strengthen its control over USDC, which it already uses across its platform. The acquisition could make Coinbase an even bigger player in the stablecoin market.

For Ripple, acquiring Circle would be a major step in expanding its stablecoin plans. To enter the stablecoin market, Ripple recently launched its own USD-backed stablecoin, RLUSD. The blockchain payment platform promotes RLUSD as a safe and regulated option, hoping to attract big businesses looking for modern, trusted financial solutions. Gaining control of USDC, which already has $60.62 billion in market capitalization, would give Ripple an instant edge in the competition.

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