Cryptocurrency firm Circle (the issuer of the USDC stablecoin) is getting attention from major players, with both Coinbase and Ripple reported to have shown interest in acquiring the company.
While Ripple reportedly made an earlier offer in the range of $4 to $5 billion that was turned down, Coinbase is now in the spotlight with a possible $5 billion bid. At the same time, Circle is continuing with its plans to list on the stock market.
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Ripple and Coinbase Want Circle for Different Reasons
The interest in Circle is not just about its valuation – it’s about its role in the stablecoin space. Ripple, which recently agreed to buy Hidden Road for $1.25 billion, is expanding its reach in cross-border payments. Circle would support this effort by adding USDC to Ripple’s toolkit.
Ripple has been strengthening its stablecoin operations, including recent partnerships with StraitsX and Societe Generale FORGE. Both initiatives focus on issuing regional stablecoins on the XRP Ledger.
Read also: RLUSD Stablecoin 4 Months After Launch Exceeds Expectations
Coinbase, on the other hand, already shares a financial link with Circle through a long-standing revenue-sharing agreement. This setup allowed Coinbase to earn $910 million in 2024 from interest generated on reserves backing USDC. This makes Circle a consistent income source for Coinbase, which holds around $8 billion in cash and recently joined the S&P 500.
The financial advantages alone make the company attractive. However, the goals differ. Ripple aims to boost its infrastructure, while Coinbase would be securing an asset that already contributes heavily to its financial results.
Discussions Continue but No Deal Finalized Yet
Fortune reported that Coinbase’s interest in acquiring Circle is based on a $5 billion valuation. This came not long after Bloomberg shared that Ripple made a similar offer earlier this year, which Circle rejected. Despite the back and forth, no agreements have been announced. In the report, a banker told Fortune:
“If Coinbase wanted to buy them, Circle would sell in a heartbeat.”
That suggests Circle might be more open to a Coinbase deal than Ripple’s previous offer. However, the company has stated it is continuing with its IPO plans. There is also no confirmation from either buyer about ongoing formal negotiations.
Coinbase CEO Brian Armstrong recently told Bloomberg that the existing partnership between the two firms would remain unaffected if Circle goes public. He added:
“In terms of other deals we might consider in the future, I mean, that, of course, would be up to them and us, but, you know, nothing to announce today.”
Public Listing Still on Circle’s Schedule
Circle made its filing to go public official on April 1. The next day, new U.S. trade tariffs were announced by President Trump, causing panic among financial markets. This makes a tricky backdrop for any public offering, let alone one in a sector where volatility is common.
This isn’t Circle’s first attempt. It had previously planned to go public through a SPAC merger in 2022. That effort was abandoned after the collapse of cryptocurrency exchange FTX, which changed investor sentiment overnight.
Still, there are reasons Circle may continue with its listing. The strong performance of other recent IPOs, such as eToro’s, has given firms renewed confidence – eToro raised $620 million with shares rising nearly 29% on its first day. While this boost is welcome news, one investor warned that early stock performance does not always reflect long-term results.
Coinbase’s $8B Cash – Strong Hand for Circle Bid
Coinbase’s financial status gives it a better position in making an offer for Circle. The company ended the first quarter of 2025 with an estimated $8 billion in available cash. On May 19, Coinbase officially joined the S&P 500. That news alone lifted its stock by over 25% last week.
Coinbase has been busy with deals this year. Earlier in May, it announced a $2.9 billion acquisition of Deribit, a platform that focuses on cryptocurrency derivatives. The company also bought Spindle, an on-chain advertising platform, and added the team behind Iron Fish to its workforce.
While these actions show Coinbase’s appetite for growth, they also raise questions about whether it has the capacity for another large purchase. On top of the recent deals, Coinbase is handling a data breach that might cost up to $400 million in compensation.
Read also: Coinbase Refuses Ransom After Insider Breach Hits <1% of Users
Ripple Faces a Financial Balancing Act
Ripple is in a different situation. It has also been acquiring companies, including the $1.25 billion deal for Hidden Road. But Ripple doesn’t have access to the same amount of cash reserves. Using large amounts of XRP to pay for Circle would likely affect the cryptocurrency’s price. That poses a risk Ripple may not be willing to take.
Ripple’s interest in Circle aligns with its focus on expanding stablecoin capabilities. That interest has been growing with new initiatives and international partnerships. But compared to Coinbase, Ripple has less room for large financial moves without creating pressure on its own assets.
Read also: Ripple’s RLUSD on Cardano: A Game-Changer?
The Circle-Coinbase Relationship Could Impact Valuation
There’s another angle to consider – how the existing revenue-sharing deal between Circle and Coinbase might affect a public listing. Circle splits the income from USDC reserves with Coinbase. This helped Coinbase make $910 million in 2024 alone.
While this setup helps both firms earn money, it may reduce Circle’s profit margins and influence how investors judge its value.
With that deal in place, Circle has fewer ways to boost its profits without changing the terms or ending the agreement. That kind of structural issue could make an acquisition offer more appealing than going public under market pressure.
What Comes Next for Circle
No final decision has been made about the sale or IPO. But whichever direction Circle chooses will shape the stablecoin market.
USDC remains the second-largest stablecoin, and its control carries major weight in the digital asset sector, especially since USDT is not MiCA compliant. If acquired, Circle could either strengthen Coinbase’s existing income streams or provide Ripple with new leverage in global payment systems.
Read also: Everything You Need to Know About the Digital Euro
