Circle Internet Financial, the issuer of the widely used USDC stablecoin, is advancing its plans for an initial public offering (IPO) targeting a valuation of at least $5 billion, with filings submitted in April and a potential launch as soon as June 2025. JPMorgan Chase and Citi are reportedly leading the underwriting process for the IPO, which would mark a significant milestone for the company and the broader cryptocurrency sector.
However, Circle’s IPO ambitions are now complicated by ongoing informal negotiations to sell the company to either Coinbase, the largest U.S. crypto exchange, or Ripple, a major blockchain payments firm. Sources familiar with the discussions revealed that Circle is open to acquisition offers and would consider selling if the price meets its valuation expectations. One insider noted that if Coinbase made an offer, Circle would “sell in a heartbeat,” though talks remain fluid and subject to change week by week.
Ripple made a notable bid earlier in April, offering between $4 billion and $5 billion for Circle, but the offer was rejected as too low. Despite the rejection, Ripple remains interested and has not ruled out making another proposal. Ripple’s motivation for acquiring Circle lies in its strategic desire to expand its stablecoin presence, as Circle’s USDC stablecoin dwarfs Ripple’s own RLUSD stablecoin in market capitalization. Acquiring Circle would instantly elevate Ripple as a dominant stablecoin provider, complementing its existing blockchain payment infrastructure and enterprise client base.
Circle and Coinbase share a longstanding relationship, having co-founded the Centre Consortium in 2018 to issue USDC. Although this partnership ended in 2023, Coinbase still holds an equity stake in Circle and benefits significantly from USDC reserve revenues, especially when USDC is held on Coinbase’s platform. This existing financial and operational interconnection makes Coinbase a logical and favorable buyer in the eyes of many industry observers.
Circle’s decision to continue pursuing its IPO while engaging in acquisition talks creates multiple possible outcomes for the stablecoin market. Should Circle proceed with the IPO, it would reinforce confidence in the stablecoin sector’s maturation and regulatory acceptance. Conversely, a sale to either Coinbase or Ripple would consolidate stablecoin market power and potentially reshape competitive dynamics in crypto finance.
In summary, Circle stands at a crossroads between going public and being acquired by two of the biggest names in crypto. The final decision will have significant implications for the stablecoin ecosystem and the broader cryptocurrency industry as it navigates growth, regulation, and institutional adoption in 2025 and beyond.
