Circle Internet Financial, the issuer of the USDC stablecoin, is exploring a potential sale to Coinbase or Ripple, sources told Fortune—a move that could shift the company away from its planned public listing.
Although Circle filed for an IPO in April, four banking and private equity executives familiar with the matter said the company has since engaged in informal acquisition talks.
It is reportedly seeking a valuation of at least US$5 billion, whether through a listing or a sale.
Circle maintains that it is not for sale and remains focused on its long-term goals.
However, the recent discussions suggest it may be considering alternative outcomes to its IPO.
Among the potential buyers, Coinbase is seen as the likelier candidate due to its longstanding ties with Circle.
The two companies co-founded the Centre Consortium in 2018 to oversee USDC issuance.
After the consortium was dissolved in 2023, Coinbase gained an equity stake in Circle and continues to share revenue from USDC reserves.
The revenue-sharing agreement includes terms favorable to Coinbase.
While both firms typically split residual income from reserves backing USDC, Coinbase receives 100% of that income when the stablecoins are held on its platform.
Coinbase also holds veto rights over new third-party partnerships that could affect its USDC earnings, along with partial rights to Circle’s intellectual property in the event of insolvency.
One source told Fortune the relationship between the two companies is so close it can feel like they already operate as one.
Ripple has also shown interest, reportedly offering US$4 billion to US$5 billion in a deal involving a mix of cash and XRP, its native token. The offer was declined as too low.
As of 31 March, Ripple held 4.56 billion XRP valued at US$11.77 billion and 37.13 billion XRP in escrow worth US$95.7 billion, according to its Q1 2025 XRP Markets Report—bringing its total XRP reserves to over US$107 billion.
Coinbase, by contrast, may have more financial flexibility. As of the end of March, it held US$8 billion in cash and, as a public company, has access to capital markets for further fundraising.
CEO Brian Armstrong recently said Coinbase is actively evaluating M&A opportunities but emphasized that integration—not acquisition—is often the more difficult part of the process.
Both companies have been active on the acquisition front. Ripple recently agreed to acquire prime brokerage Hidden Road for US$1.25 billion.
Coinbase has made several recent acquisitions as well, including crypto derivatives exchange Deribit for US$2.9 billion, the team behind privacy-focused project Iron Fish, and onchain advertising platform Spindle.
Circle’s IPO filing remains active, though no date has been set for a roadshow or pricing.
With strategic discussions ongoing, the company appears to be keeping multiple paths open as it weighs its next steps.
Featured image: Edited by Fintech News Singapore, based on image by denphumi via Freepik
