{"id":480857,"date":"2025-05-19T20:45:38","date_gmt":"2025-05-19T19:45:38","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=480857"},"modified":"2025-05-19T23:36:19","modified_gmt":"2025-05-19T22:36:19","slug":"circle-in-talks-with-coinbase-ripple-over-potential-sale-amid-5b-ipo-plans","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/circle-in-talks-with-coinbase-ripple-over-potential-sale-amid-5b-ipo-plans\/","title":{"rendered":"Circle in talks with Coinbase, Ripple over potential sale amid $5B IPO plans"},"content":{"rendered":"<p><a href=\"https:\/\/cryptoslate.com\/companies\/circle\/\">Circle<\/a> is pressing ahead with plans to go public, but the stablecoin issuer is also exploring the possibility of a sale to either <a href=\"https:\/\/cryptoslate.com\/companies\/coinbase\/\">Coinbase<\/a> or <a href=\"https:\/\/cryptoslate.com\/companies\/ripple\/\">Ripple<\/a>, Fortune reported on May 19, citing people familiar with the matter.<\/p>\n<p>The company filed paperwork in April for a <a href=\"https:\/\/cryptoslate.com\/circle-formally-files-for-ipo-seeks-listing-on-nyse-under-crcl-ticker\/\">long-awaited initial public offering<\/a> (IPO) targeting a $5 billion valuation, but informal acquisition talks could alter its path, the report said.<\/p>\n<p>Sources said the discussions are still early-stage and exploratory, with no formal offers on the table yet. However, insiders believe Coinbase is the most logical acquirer, given its deep integration with Circle\u2019s <a href=\"https:\/\/cryptoslate.com\/coins\/usd-coin\/\">USDC<\/a> stablecoin ecosystem.<\/p>\n<h2>Coinbase and Circle's relationship<\/h2>\n<p>Founded in 2018 through a joint venture called Centre Consortium, Coinbase and Circle were originally co-governors of USDC.<\/p>\n<p>However, that structure was dissolved in 2023, giving Circle full control of the stablecoin's governance while granting the exchange an equity stake and a favorable revenue-sharing arrangement.<\/p>\n<p>Based on Circle\u2019s S-1 filing, Coinbase and the stablecoin issuer split residual revenue 50\/50 from reserves backing USDC. However, when USDC is held directly on Coinbase\u2019s platform, the exchange receives 100% of that revenue.<\/p>\n<p>This revenue stream has grown in significance, as Coinbase\u2019s recent earnings show a notable uptick in income derived from USDC-related activity.<\/p>\n<p>The agreement also includes stipulations limiting Circle\u2019s ability to enter into major new USDC-related partnerships without Coinbase\u2019s consent and grants Coinbase partial IP control in the event of Circle\u2019s insolvency.<\/p>\n<p>These provisions suggest a level of interdependence that has led some insiders to view the companies as practically inseparable. A banker familiar with the talks told Fortune that if Coinbase expressed any intention of acquiring the firm, &#8220;Circle would sell in a heartbeat.\u201d<\/p>\n<h2>Ripple\u2019s initial bid rebuffed<\/h2>\n<p>Ripple Labs also approached Circle with a $4 billion to $5 billion offer, but the stablecoin issuer rejected the bid as <a href=\"https:\/\/cryptoslate.com\/ripples-reported-5-billion-offer-for-circle-rejected-as-too-low\/\">too low<\/a>. Ripple\u2019s offer reportedly included a mix of cash and <a href=\"https:\/\/cryptoslate.com\/coins\/xrp\/\">XRP<\/a>.<\/p>\n<p>According to its first-quarter XRP Markets Report, Ripple held 4.56 billion XRP, valued at approximately $11.8 billion, on its balance sheet and an additional 37.13 billion XRP (around $95.7 billion) in escrow as of March-end.<\/p>\n<p>Although Ripple has been active in acquisitions, including its recent <a href=\"https:\/\/cryptoslate.com\/ripple-owned-hidden-road-secures-as-broker-dealer-license-to-expand-institutional-reach\/\">$1.25 billion purchase<\/a> of prime brokerage Hidden Road, insiders suggest Coinbase is better positioned to acquire Circle given its cash reserves and public market access.<\/p>\n<p>Coinbase, which had $8 billion in cash as of its last quarterly filing, has already completed several acquisitions this year, including crypto derivatives exchange Deribit for $2.9 billion and the onchain ads platform Spindle.<\/p>\n<p>Coinbase CEO Brian Armstrong has stated that Coinbase is constantly evaluating M&A opportunities but remains selective due to the complexity of integration.<\/p>\n<p>As of now, Circle remains committed to going public, but one private equity executive told Fortune that the situation could evolve as things are changing &#8220;week by week.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circle is pressing ahead with plans to go public, but the stablecoin issuer is also exploring the possibility of a sale to either Coinbase or Ripple, Fortune reported on May 19, citing people familiar with the matter. The company filed paperwork in April for a long-awaited initial public offering (IPO) targeting a $5 billion valuation, [&hellip;]<\/p>\n","protected":false},"author":1250,"featured_media":480891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,77928,39,77968,38,32631],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Circle in talks with Coinbase, Ripple over potential sale amid $5B IPO plans<\/title>\n<meta name=\"description\" content=\"Circle&#039;s IPO plans face uncertainty amid early-stage sale discussions with Coinbase and Ripple.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/circle-in-talks-with-coinbase-ripple-over-potential-sale-amid-5b-ipo-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Circle in talks with Coinbase, Ripple over potential sale amid $5B IPO plans\" \/>\n<meta property=\"og:description\" content=\"Circle&#039;s IPO plans face uncertainty amid early-stage sale discussions with Coinbase and Ripple.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/circle-in-talks-with-coinbase-ripple-over-potential-sale-amid-5b-ipo-plans\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-19T19:45:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-19T22:36:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/05\/circle.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Assad Jafri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Assad Jafri\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/circle-in-talks-with-coinbase-ripple-over-potential-sale-amid-5b-ipo-plans\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/circle-in-talks-with-coinbase-ripple-over-potential-sale-amid-5b-ipo-plans\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#person\",\"name\":\"Assad Jafri\",\"url\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"caption\":\"Assad Jafri\"},\"jobTitle\":\"Former Editor & Reporter\",\"description\":\"AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. 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