Circle Internet Financial, the issuer of the USDC stablecoin, is reportedly exploring potential acquisition deals with major crypto players Coinbase and Ripple alongside its ongoing plans for an initial public offering (IPO). According to multiple reports, Circle is targeting a valuation of around $5 billion either through a public listing or via a strategic sale. Informal talks have been held, with Coinbase seen as the more likely buyer due to its significant financial resources and existing partnership with Circle through the Centre Consortium, which jointly manages USDC governance and revenue sharing.
Ripple has also made an acquisition offer estimated between $4 billion and $5 billion, proposing to leverage its substantial XRP token reserves, but this bid has been reportedly declined by Circle. Coinbase, with $8 billion in cash and strong capital-raising capabilities, currently stands as the stronger financial contender. Coinbase CEO Brian Armstrong indicated openness to future deals without viewing Circle's IPO as a hindrance to their commercial relationship.
The discussions occur amid heightened activity in the stablecoin market and increased acquisitions in the crypto space, highlighted by Coinbase's recent purchases such as Deribit and Spindle. Market reactions to the acquisition talks have been mixed, reflecting cautious optimism about potential synergies and regulatory uncertainties, especially surrounding Ripple's ongoing legal challenges.
While Circle's IPO plans remain active, no official announcements or roadshows have been disclosed. Analysts suggest a successful acquisition could enhance USDC's market presence and influence broader crypto valuations. However, the ultimate outcome depends on regulatory developments, Circle's strategic decisions, and the ongoing competitive dynamics between Coinbase and Ripple.