Recent developments in the cryptocurrency sector indicate that Circle is on the verge of becoming a publicly traded company with its planned initial public offering (IPO). Despite this, there are murmurs of a possible acquisition by high-profile entities such as Coinbase Global or Ripple, which may complicate these IPO aspirations.
Circle’s Potential Partnership with Coinbase
Sources connected to the negotiations reveal that Circle is eyeing a target valuation of at least $5 billion, aligning this figure with its IPO goals. Insiders suggest that if Coinbase were to extend a serious offer, Circle would be more than willing to accept, reflecting a robust connection between the two firms.
“In the event that Coinbase showed serious interest, Circle wouldn’t hesitate to proceed,” stated an informed source. This ongoing dialogue is dynamic, with updates emerging frequently.
Nonetheless, Circle remains focused on achieving its IPO. The company has yet to finalize pivotal aspects of the offering or initiate its promotional roadshow. Both companies share a common history; they founded the Centre Consortium in 2018, which plays a crucial role in managing USDC.
Under this partnership, Coinbase secured an equity stake in Circle when the venture wrapped up in 2023, and Circle assumed full governance over USDC.
Financially, Circle and Coinbase have benefited from a revenue-sharing model, with both entities receiving half of the income generated from USDC reserves. According to Circle’s S-1 filing, this agreement means each company takes away a 50% share from the residual revenue.
However, Coinbase maintains full revenue rights when USDC is stored on its platform, a scenario that has likely gained prominence as reflected in Coinbase’s recent earnings reports, indicating a spike in revenue from their collaboration.
Ripple’s Competitive Edge
On another front, Ripple is also eyeing Circle for potential acquisition, offering a bid between $4 billion and $5 billion, which was reportedly turned down as insufficient, based on a report by Bitrabo.
A potential deal from Ripple could involve a mix of its native cryptocurrency, XRP, along with cash, utilizing Ripple’s robust financial standing, which boasts a substantial amount of XRP.
Conversely, Coinbase could look to finance a purchase with both cash and stock since it reported approximately $8 billion in cash reserves as of March 31, 2025. CEO Brian Armstrong has acknowledged the company’s willingness to explore mergers and acquisitions, while highlighting the critical need for successful integration post-acquisition.
However, market analyst Paul Barron noted in a recent update on social media that Ripple appears to hold an edge in acquiring Circle, with projected valuations ranging between $9 and $11 billion.
Currently, XRP is trading at $2.38, representing a 14% month-over-month increase. Year to date, XRP has shown remarkable strength, outperforming most top cryptocurrencies with a staggering 367% growth.
In conclusion, as the cryptocurrency landscape evolves, the potential for significant mergers and acquisitions remains high, particularly between influential players like Circle, Coinbase, and Ripple. Observers will need to monitor the situation closely, as it could reshape the future of digital currencies.
