Circle Eyes $5B IPO Amid Acquisition Interest from Coinbase and Ripple

Circle is charging forward with its initial public offering plans, but the stablecoin giant is also weighing the possibility of a strategic sale — with Coinbase and Ripple emerging as potential suitors, according to a May 19 report from Fortune.

The company filed for an IPO in April, targeting a valuation near $5 billion. However, behind the scenes, informal acquisition discussions are reportedly underway, with Coinbase viewed by insiders as the most likely buyer due to its deep entanglement with Circle’s USDC operations. These talks are described as preliminary, with no formal offers submitted.

Coinbase's Deep Ties to Circle

Circle and Coinbase co-founded the Centre Consortium in 2018 to co-manage USDC, the second-largest stablecoin in the market. That governance model ended in 2023, when Circle assumed full control of USDC. Despite this, Coinbase retained a 50% share of the revenue generated from USDC reserves — and collects 100% of the revenue when users hold USDC directly on its platform.

This arrangement has become a key revenue stream for Coinbase, reflected in its recent earnings report. It also places notable restrictions on Circle, such as limitations on entering new partnerships without Coinbase’s approval. In the event of Circle's insolvency, Coinbase would also obtain partial intellectual property control over aspects of USDC.

These intertwined financial and structural agreements have led some observers to view the companies as effectively co-dependent. One investment banker close to the matter told Fortune that if Coinbase makes a serious move, “Circle would sell in a heartbeat.”

Ripple’s Lower Offer Falls Flat

Ripple Labs has also made an acquisition attempt, reportedly offering between $4 billion and $5 billion in a deal that included both cash and XRP tokens. The bid was declined, considered undervalued by Circle’s board.

As of the end of March, Ripple held roughly $11.8 billion worth of XRP on its balance sheet and controlled another $95.7 billion in XRP locked in escrow, per its Q1 2025 XRP Markets Report. Despite Ripple's strong acquisition track record — including a recent $1.25 billion deal for brokerage firm Hidden Road — insiders suggest Coinbase holds the upper hand due to its liquidity and ongoing presence in the public markets.

Coinbase, which held $8 billion in cash last quarter, has already been active in M&A this year, snapping up Deribit for $2.9 billion and Spindle, a Web3 ad platform. CEO Brian Armstrong has stated that while Coinbase evaluates many deals, the company remains highly selective.

Going Public — For Now

Despite the behind-the-scenes acquisition buzz, Circle’s official stance remains focused on its IPO path. But insiders suggest that the situation is fluid. A private equity executive told Fortune that developments are shifting “week by week,” leaving open the possibility that Circle may change course if the right offer materializes.

Whether Circle proceeds with its public listing or is absorbed by a crypto heavyweight like Coinbase or Ripple, the outcome could significantly reshape the stablecoin landscape — and influence who controls the infrastructure underpinning billions in on-chain value.